NEW YORK Ferrosilicon prices have dropped amid fierce competition for business between traders, with Nucor Corp. said to have concluded its tender.
Ferrosilicon has fallen to a range of 90 to 92 cents per pound from 91 to 93 cents previously, with market participants telling AMM that traders are clamoring for business to fill their order books. Prices have dropped steadily since trading in a range of 95 to 97 cents per pound in late March.
The market had been awaiting the outcome of Nucors tender for a number of weeks, with the price drop substantiating previous claims by some traders that the steelmaker was holding quotes below then-published prices (amm.com, May 31).
"The Nucor tender pulled some numbers down. There was a lot of talk in the market saying Europe is terrible, this is the only thing thats out there, " one trader said. "But we quoted our numbers, we didnt even have to negotiate and we got some of that business. My sense is that the market is not that cheap and theres not a lot of material sitting around."
Nucors ferrosilicon business reportedly was split between a number of suppliers. The Charlotte, N.C.-based company couldnt be reached for comment.