NEW YORK High-carbon ferromanganese prices have dropped again, although one trader says an inability to move contracted material due to Mississippi River flooding could push spot prices back up.
High-carbon ferromanganese has fallen to a range of $1,050 to $1,100 per long ton from $1,090 to $1,145 previously. The major confirmed business was a 300-ton transaction to Saukville, Wis.-based Charter Steel at $1,070 per long ton on a delivered basis.
High-carbon ferromanganese prices have dropped steadily since April 2012, when they were in a range of $1,300 to $1,350 per ton.
The trader said he had several barges each containing 1,500 tonnes of material that are "stranded" on the Mississippi River, which has been subject to lock closures due to flooding in recent weeks (amm.com, April 23). "They cant move, so were running out of material. I was approached for material in that Charter Steel tender, but I dont have it to give," he said.
The trader said the issue has the potential to create an increase in spot demand as the barges containing material were intended to service fixed contracts.
Most locks along the river have been reopened after closures in recent weeks, a U.S. Army Corps of Engineers spokesman told AMM May 3. "We do have forecasts coming out for more rain in the area, but right now it doesnt look like were going to reach those levels again that would necessitate a closure," he said.