NEW YORK Ferrosilicon prices fell as short-term supply tightness eased following an earlier increase on the back of a tender from Outokumpu Stainless USA LLC.
Ferrosilicon slipped to a range of 94 to 96 cents per pound from 95 to 97 cents previously, with material said to be trading at lower volumes.
"Most of these tenders are smaller ones, so some traders have that mentality of wanting to cash out in todays market because it could get weaker. Its a bird in the hand thing," one trader said.
The tender from Calvert, Ala.-based Outokumpu Stainless USA reportedly prompted supply to become "really, really tight" (amm.com, March 22). "I think the short-term shortage that the market realized while (Outokumpu) was in the marketweve gotten past that now," a second trader said.
"Outokumpu was a big-volume tender and most people couldnt cover those volumes, so they ended up picking it up here and there at varying prices," the first trader said.