Manganese alloy prices are diverging in Europe, with ferro-manganese pushing higher this week while the silico-manganese market comes under pressure from increased supply.
High carbon ferro-manganese prices were assessed today at 1,800-1,850/t ($2,036-2,092/t) ddp with trader offers rising to 1,900/t — up from 1,750-1,800/t ddp a month ago and their highest level since November 2008 amid the financial crash. Meanwhile, silico-manganese prices were assessed today at 1,750-1,800/t ddp, with offers slipping towards 1,700/t ddp for delivery in the first quarter — down from 1,875-1,925/t ddp a month ago.
The two alloys tend to move in tandem with price indications often registered at similar levels. But a recent uptick in regional silico-manganese supply — in part thanks to increased imports from India — has caused the underlying fundamentals to diverge, and the impact is being borne out in the prompt spot market.
And even lower offers for first quarter shipments underscore widespread expectations that prices will soften further. This week, European traders received silico-manganese offers at $1,500/t fob India — putting prices at around $1,800/t on a cif basis or just shy of 1,600/t. Even once duties, delivery and warehousing costs are factored in, prices for that material stand significantly below today's prompt spot market, with traders offering that incoming material to their customers at below 1,700/t in-warehouse Rotterdam.
"They [traders] know the price will go down...
Read Full Story: https://www.argusmedia.com/en/news/2279474-eu-mn-alloy-market-diverges-amid-supply-shifts
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