NEW YORK Ferroalloys
market participants expressed relief about the fiscal cliff
deal, noting that while some issues remain unresolved at least
the tax structure is clear.
"Investors wont commit
money until they have some idea of where things are going. The
tax issue sort of comes off the table," one market source said.
"Now we know what it is; now we go on and live with it."
"The fiscal cliff resolution
helps to get things moving," a source at a ferrosilicon
supplier said. "Now we have a little more clarity. (Also), not
letting it go over was a plus."
Most ferroalloy sources expect
strong first-quarter demand, similar to early 2012, when prices
for most alloys rose as consumers restocked and low imports
kept material tight.
However, some expect demand to
fall off toward the end of the first quarter, coinciding with
discussions about the debt ceiling and defense spending
"(The resolution to the fiscal
cliff) was positive, though it looks like theyre going to
have another fiscal cliff in another couple of months," the
market source said.
"Were just waiting for the
bump-up, and then well sell into strength and itll
fall off a cliff. Well have our own alloy cliff," one
However, the ferrosilicon
supplier source expressed little concern about whether the
remaining issues would be resolved or postponed further. "The
government is used to kicking the can down the road," he