NEW YORK Strong competition for spot business has dragged down high-carbon ferromanganese prices, while silicomanganese traders continue to express frustration with reported lower selling prices.
High-carbon ferromanganese has dropped to $1,015 to $1,060 per long ton from $1,050 to $1,100 previously, while the range for low-carbon ferromanganese has widened to $1.01 to $1.05 per pound from $1.03 to $1.05.
Traders told AMM that the market was strongly influenced by a high-volume request for quotations which was settled below previously published prices.
"Everyone threw themselves at the business," one trader said.
A second trader said that prices also are being forced down because of a weakening South African rand, while global production continues to exceed demand. "Theyre basically putting more material in the market than what is needed," he said.
Meanwhile, silicomanganese prices held between 52 and 53 cents per pound, with traders continuing to voice frustration after a companys sales at lower prices caused the market to dip two weeks ago (amm.com, June 14).
"It doesnt make sense for them to minimize their price other than to lower published prices. Its got us a little rattled," the second trader said.
"Unless (they) plan on supplying the market until 2014 by themselves, I wish everyone good luck," a third trader said.
"That company has been really aggressive in the market," a fourth trader said. "Hopefully the third-quarter business has been completed, and whatever blood has been spilled, now the wounds can heal."
The recent drop in silicomanganese defied previous forecasts that prices would increase with Felman Production LLCs decision to idle one of its furnaces (amm.com, May 24).
"There are a lot of disconnects out there. Its a perplexing scenario," a fifth trader said. "The supply-demand fundamentals are out the door."