HomeGAA in the MediaNewsArchiveFerroalloy contract season moves into Dec.

 

AMM
American Metal Market

December 4, 2013

Ferroalloy contract season moves into Dec.

NEW YORK - Silicomanganese long-term contracts may not be finalized until Christmas, while negotiations for other ferroalloys also are expected to drag on well into December.

 

Ferroalloy market participants told AMM that many large consumers have only just finished accepting quotes for 2014 contracts, despite previous expectations that the contract season could finish before the end of November.

However, many sellers are hoping to receive feedback on their offers this week.

"The feeling I'd had was that everyone wanted to get stuff done before Thanksgiving, but with people only coming out and looking for stuff in December, that could push it until just before Christmas," a source at one manganese producer said. "I think the lack of visibility in 2014 steel production is not pushing people to get off their butts, and on the silicomanganese side, people are still waiting to see what Felman will do."

Market participants previously reported that Letart, W.Va.-based Felman Production LLC's petition for a special electricity rate for its plant in New Haven, W.Va., was creating supply uncertainty that could cause some consumers to lean more heavily on the spot market next year. 

One consumer source said he had not seen any impact on quoted volumes in the silicomanganese contract offers he has received so far. "It appears that plenty of tons are being offered on silicomanganese. We've received sizable offers, so I don't think it will be a problem getting material," he said.