NEW YORK Silicomanganese market activity has picked up with the reported conclusion of a tender from a major steelmaker, although prices have remained steady.
Market sources previously told AMM that the steelmaker had released a request for quotations for up to 3,000 tons of silicomanganese for fourth-quarter delivery to three of its mills. The company could not be reached for comment.
Silicomanganese prices are unchanged at 49 to 51 cents per pound, with the steelmakers tender said to have been concluded within this range, but traders said this past week that they expect spot prices to move up soon, with availability said to be tightening following the conclusion of the tender.
A trader said that one of the steelmakers mills has already re-emerged seeking more material, which he believes could act as the catalyst to push spot prices up. After they booked it, they had to turn around and go back out again. There are a lot of traders looking for more product, people are short, he said. Going forward, they wont have that material at that price anymore.
I think were finally starting to see the ramifications of Felman Production (LLC) closing (its operations in New Haven, W.Va.). I dont expect (prices) to run away, but theres not a lot of material right now, a second trader said.