NEW YORK U.S.
ferrosilicon prices have dropped back to February levels as
supply continues to improve following a series of large tenders
Ferrosilicon is now in a range
of 92 to 94 cents per pound, down from 94 to 96 cents
previously, after peaking at 95 to 97 cents per pound in March
with reports of Outokumpu Stainless USA LLC tendering up to
2,000 tonnes of material (
amm.com, March 22).
is not as tight as it was before. Now that some of those big
inquiries from two weeks ago have passed, the euphoria has also
passed and youll see a lot more material coming in," one
trader said. "You could go pick up 100 tonnes at 92 to 93 cents
per pound now, no problem."
A consumer source confirmed that
his company is currently seeking proposals for several
thousands tons of 75-percent ferrosilicon, with offers closing
in the coming week. "Were looking for a longer-term
arrangement for a significant portion (but not all) of our
combined requirements for our steel mills," he told
AMM via e-mail.
Meanwhile, market participants
said that U.S. supply is unlikely to be impacted by
FerroAtlántica Group SAs announcement that it has
stopped all silicon production at its facilities in South
Africa for April and May (
amm.com, April 2).
"Its only two months,
its only a small amount of material out of the market,
and theyve already positioned themselves so that it
wont have much of an impact," a second trader said,
noting that more ferrosilicon production is set to come online
"Its a good way to talk up
your book, but youve got enough other sources of
ferrosilicon to cover that," the first trader said. "Only if
you have Thyssen(Krupp AG), Nucor (Corp.) and Arcelor(Mittal
USA LLC) suddenly come out for 1,500 tonnes each next month
(would) you see a similar type of shortage."