NEW YORK The ferrosilicon spot market continues to diverge, with prices reported in a range as wide as 6 cents per pound, although major consumers are reportedly still waiting out the market.
AMMs price remains unchanged in a range of 96 to 98 cents per pound, with unconfirmed transactions reported as low as 94 cents and as high as $1 per pound.
Many ferrosilicon sellers have been pushing for higher prices since August due to supply concerns prompted by the initiation of an anti-dumping investigation by the U.S. Commerce Department into imports from Russia and Venezuela (amm.com, Aug. 9). However, ferrosilicon import figures for August have been delayed by the recent government shutdown.
"Some guys are at 96 cents per pound, some say theyre at $1. But if you want to sell, you need to be at that lower end," one trader said. "Its only small quantities, a truckload here and there, because were in between the quarter."
Some parties are looking to lock in first-quarter business at a fixed price of 98 cents per pound, a second trader said.
However, the majority of market participants contacted by AMM said there was little trading in ferroalloys or inquiries taking place, as most consumers are wait until November before they start looking at their requirements for the first quarter of 2014.
"I think Ill wait until the start of November, when first-quarter negotiations start again," a third trader said.
"Were not really chasing it; I think more business will be done in late November, early December," the second trader said. "Why force business now? If you look at the replacement costs, its more attractive to be on the sideline and wait a month."