AMM

American Metal Market

By Daniel Fitzgerald

July 15, 2013

Silicomanganese traders aggravated by price drop

NEW YORK - Silicomangancse prices have dropped again, although several traders continue to complain that the market is being unfairly influenced by isolated cut-price sales rather than supply or demand fundamentals.

AMM’s silicomanganese price dropped to 49 to 51 cents per pound July 11 from 52 to 53 cents previously, with more high-volume transactions reported at the lower end of the range.

However, many traders are still adamant that the price is being pulled down by the sales of one company rather than any fundamental weakening in demand (amm.com, Jun 28).

One trader said that the situation is likely to lead many traders to eschew long-term contracts that are tied to publish prices in favor of spot trading.

Meanwhile, market players said they don't expect any notable impact from Felman Production LLC's decision to halt silicomanganese production in New Haven, West Virginia until prices improve (amm.com, Jun 28). 

"Other than the psychological effect of having a producer say publicly 'we cannot operate at these prices,' I really can't see it having any material impact," a second trader said.