Silicomanganese trading activity has picked up but prices have
trended down marginally, confusing traders who believe that
impending supply constraints should be supporting prices.
transactions took place in a range of 52 to 53 cents per pound,
with smaller volumes slightly outside that range.
Silicomanganese previously was trading in a range of 53 to 57
cents per pound, with major tonnages transacting more toward
the lower end of the range.
Market participants couldnt explain why prices appear to
have dropped, having previously forecast that prices would rise
in light of Felman Production LLCs decision to idle one
of its furnaces (
amm.com, May 24).
However, one trader
claimed that some market participants were selling well below
the rest of the market in order to lower published prices.
"Thats been concerning to a number of us, because where
are they getting the material from? They definitely booked it
very low," he said.
Much attention has been focused on the outcome of Nucor
Corp.s silicomanganese tenders, with the companys
Darlington, S.C., plant reported to have concluded its tender
while the Marion, Ohio, plant has yet to announce. "The last
time I checked on Marion, they were still out," a second trader
N.C.-based steelmaker was said to have been in the market for
up to 3,300 tons of silicomanganese for the third quarter, with
the outcome of the tender taking longer than most suppliers
amm.com, June 7).