NEW YORK Ferrovanadium prices have dropped on reports of a supply surplus, although overall ferroalloy spot trading has been light as long-term contracts are covering most consumers requirements.
Ferrovanadium has fallen to a range of $13 to $14 per pound from $14.90 to $15.15 previously, with market participants telling AMM that supply is exceeding demand in the spot market.
"There seems to be a fair amount of material out there, and most traders seem hungry for some business," one consumer said.
All other ferroalloy prices are unchanged, with ferrosilicon continuing to trade in a range of 92 to 94 cents per pound and high-carbon ferromanganese steady at $1,090 to $1,145 per long ton.
Market participants told AMM that long-term contracts continue to satisfy the vast majority of consumers production needs.
"Everything is booked out, and production hasnt gone up (and) requiring people to go out for additional material," one trader said. "We wont see much until people start thinking about what they need for the third quarter, but usually the third quarter is a little quieter anyway, so if were seeing this in April I dont know what well get in summer.
"Demand and usage hasnt changed, just the timing and frequency, but its a little disconcerting when you dont get any inquiries," he added.
A second trader estimated that long-term contracts were covering 85 percent of his customers requirements. "The spot market has really dried up. There are barely any inquiries, and its usually only for a truck(load) here and a truck(load) there," he said.
A third trader suggested that spot business might improve as the second quarter progresses if some consumers find themselves coming up short.