Ferroalloys contract talks are set to kick off in mid-November,
and so far market participants are unsure what form agreements
might take for next year.
Sellers are hoping for
a reduction in discounts off benchmark numbers or a move to
"Contracts for next
year are still a big question mark right now," one ferrosilicon
With the formula-based
discounts off benchmark prices entered into for 2013, producers
have in some cases been discounting off prices that were
already "loss-making," the supplier said.
"Were done with
the deep discounts. Youre going to have to see prices
going up across the board. Its just because everybody is
losing money," one manganese alloy supplier said.
A ferrovanadium source
said that contracts completed early were made at significantly
lower discounts to benchmark numbers, as that market is
expected to be tight in 2014.
Some sources hoped
that the recent controversy around discounting off benchmark
numbers in the flat-rolled steel market would filter through to
amm.com, April 17).
"Its hard for
the mills to argue for formula-based discounts (on the buying
side) when at the same time they are trying to get away from
them on the sales side," a second manganese alloy supplier
The market is
generally expected to gradually improve next year, although no
large jumps in demand are seen.
going to be a little bit better than this year," one noble
alloys trader said.