September 22, 2014
By Daniel Fitzgerald

FeSi prices narrow as market diverges

NEW YORK - Ferrosilicon spot prices have begun to diverge, with some traders reportedly chasing sales in order to liquidate their positions while others are holding firm at around $1 per pound.

The ferrosilicon price range widened to 95 cents to $1 per pound from 97 cents to $1 previously.

Suppliers contacted by AMM were divided between those securing transactions at the low end of the range and those who said they were not even offering material for less than 99 cents.

However, no suppliers reported a downturn in demand that would warrant the price drop, leaving one supplier source to speculate that the lower sales were being made by traders looking to liquidate their positions after building up significant inventories in the first half of the year.

"My understanding is that some of the traders are trying to get out of their positions and take the opportunity to unload this material," he said. "There are some concerns that, with no anti-dumping duties being imposed on Russian and Venezuelan imports of ferrosilicon, spot prices will go down, so I think there'll be a temporary downturn in this market until these guys get rid of their material."

The U.S. International Trade Commission (ITC) ruled in August that ferrosilicon imports from Venezuela were not injuring or threatening to injure the U.S. industry, resulting in no anti-dumping duties (, Aug. 26).

Ferrosilicon shipments from China more than doubled leading up to the ITC decision, totaling 37,589 tonnes in the first seven months of 2014 vs. 16,436 tonnes in the same period last year.

Some market participants have speculated that less Chinese ferrosilicon would be imported into the United States as a result of the ITC ruling, although one trader with access to such material rejected the claim when contacted by AMM.

Miami-based Globe Specialty Metals Inc. and Calvert City, Ky.-based CC Metals & Alloys LLC recently filed an appeal against the Commerce Department's negative dumping determination on imports of Russian ferrosilicon (, Sept. 9).