There are signs that the US bulk ferroalloys market may be close to bottoming out after large falls in the fourth quarter of 2008. But market participants said that trading volume on the spot market was minimal and there was a dearth of inquiries for long term contracts among steel mills.
This came against the backdrop of news that ArcelorMittal will take an electric arc furnace out of production at its Canadian plant in Hamilton, Ontario next week for the remainder of the first quarter. Traders were uncertain as to what effect this would have on ferroalloys demand, as a company spokesman said that production was being transferred to a nearby basic oxygen furnace. But they said it would mean a reduction in ferrous scrap requirements.
An assessment by Platts for high-carbon ferrochrome widened to 75 to 85 cents per pound FOB Pittsburgh from 84 to 86 cents a week earlier. Several participants said they believed that high carbon ferrochrome prices may be close to finding a price floor, even though it was the high carbon price that came under pressure this week, while low carbon prices were unchanged. Last week, traders and producers were indicating the possibility of imports of European low carbon ferrochrome, which would continue to keep downward pressure on US low carbon prices, due to a steadier dollar and weak market conditions in Europe.
The Platts survet reported a price for high carbon 78% Mn ferromanganese price unchanged at USD 1,375 to USD 1,400 per long tonne, though one consumer said that he believed the next business was likely to be concluded at closer to USD 1,300. He said that "After a few weeks of that no business, I'm sure somebody will be only too happy to sell it at USD 1,300 or less. I could see it going to USD 1,200."
Meanwhile, some traders put the market at 47 to 50 cents per pound. The Platts assessment for 2% C silicomanganese rose to 47 to 49 cents per pound Wednesday from 45 to 47 cents per pound a week earlier.
Source: Steel Guru, Platts
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