Ryan’s Notes
November 7, 2014

US silicomanganese prices rise

The US silicomanganese market saw a lift this past week, as at least one mill was looking for sizeable tonnages in the spot market. The transactions have pushed prices higher in a market that has been largely contracted under long-term agreements. Prices were up to 58-59C per lb, ex-warehouse. Sources noted that at least one large seller was unable to meet the buyer's needs, due to heavy contract requirements and limited availability in November.

Some US sources have previously speculated that prices for silicomanganese would erode, due to a prolonged premium over the European market and an appreciating dollar. Others felt that prices could drop in part due to a rise in output from Felman Production's silicomanganese plant. Imports from some countries, particularly from Georgia, have declined in the past several months, given Felman's restart in West Virginia. With downstream intake remaining fairly steady among US mills, most sources were not expecting any major changes in market fundamentals though the end of the year.

European market sources, meanwhile, reported steady business over the past week. A number of small deals have been concluded since the beginning of November, with one large mill closing near mid-range, but there was no alteration to the CRU Ryan's Notes' range, week-on-week, holding level at €820-860 per mt, DDP.