NEW YORK Silicomanganese market participants are waiting
on the outcome of a high-tonnage Nucor Corp. tender, with some
sources saying that it could determine the future direction of
the spot market.
Silicomanganese prices were steady in a range of 52 to 56 cents
per pound Feb. 21, although most attention is focused on the
Nucor request for quote and the potential impact of
the winning bid.
I think silicomanganese will move with the Nucor bid.
That will give a good sense as to what is going on in this
market, one trader said. Other mills are staying
out of the market to see how it goes.
It will be interesting to see what Nucor gets, one
consumer source said, because thats huge tonnage.
Theyre buying for the balance of the year.
The trader estimated that a substantial amount of Nucors
annual spot requirement for silicomanganese would be covered
with the tender though exact volumes were unconfirmed.
Several traders told AMM that the tender was scheduled to close
Nucor has to reach a decision by committee, so it may
take a while, a second trader said.
Nucor could not be reached for comment.
Traders told AMM earlier this month that
silicomanganese was undervalued, with the material
failing to record the same price gains experienced by
ferrosilicon since the start of 2013.