American Metal Market
AMM
June 23, 2014
By Daniel Fitzgerald

 SiMn mart bearish ahead of Felman planned restart

NEW YORK - Silicomanganese market sentiment is trending towards bearish, with an expected restartof Felman Production LLC prompting spot prices to firm below 60 cents per pound.

Free-market spot prices have firmed in a range of 57 to 59 cents per pound following a high-volume tender which recently settled in that range.

Letart, W.Va.-based Felman is understood to have been one of the companies to bid for the business, fueling concerns from some suppliers that the imminent return of the industry's dominant player could negatively impact spot pricing.

Felman is aiming to restart operations at its New Haven, W.Va., plant by the end of June, with the company said to be "nearing agreement" with its electricity supplier for a new power deal (amm.com, June 16).

"The market will show signs of moving off a bit with the return of Felman," one supplier said. "Obviously with them coming back, they'll do all they can to not undercut the market, but some of the smaller guys are going to have to liquidate their positions somewhat."

However, a second supplier reiterated his belief that Felman would likely adopt a conservative approach to pricing so as not to put downward pressure on free-market spot tags (amm.com, April 4).