NEW YORK Silicomanganese prices have dropped again, although several traders continue to complain that the market is being unfairly influenced by isolated cut-price sales rather than supply or emand fundamentals. AMMs
silicomanganese price dropped to 49 to 51 cents per pound July 11 from 52 to 53 cents previously, with more high-volume transactions reported at the lower end of the range.
However, many traders are still adamant that the price is being pulled down by the sales of one company rather than any fundamental weakening in demand (amm.com, Jun 28
One trader said that the situation is likely to lead many traders to eschew long-term contracts that are tied to published prices in favor of spot trading.
Meanwhile, market players said they dont expect any notable impact from Felman Production LLCs decision to halt
silicomanganese production in New Haven, West Virginia until prices improve (amm.com, Jun 28
Other than the psychological effect of having a producer say publicly we cannot operate at these prices, I really cant see it having any material impact, a second trader said.