HomeGAA in the MediaPress ReleasesNewsArchiveClaims call for higher Euro SiMn prices.

 

Ryan’s Notes
December 26, 2014

Claims call for higher Euro SiMn prices.

 Market sources in Europe were calling for higher prices for silicomanganese, as downstream spot supplementation had been more active than expected leading up to the winter holidays. Meanwhile, buying activity was expected to resume again in early January.

Some sources have noted rising replacement costs, due to a higher valued dollar. Meanwhile, with prices still holding a sizeable premium in the US, South African volumes have largely focused on US mills and long-term agreements to major buyers starting in early 2015.

In the US market, although prices were down on average since early Q4 2014, sellers have managed to protect the current price premium over foreign markets, even with a large rise in imports. Meanwhile, market speculation suggested that Felman Production's output was already largely contracted to US mills. As such, this could leave little, if any, Felman silicomanganese available to the spot market, sources suggested.

At present, prices for US silicomanganese are holding steady at 55-57c per lb, ex-warehouse. There was no indication as to how prices would settle after the New Year holiday, as the majority of US mills have settled long-term contracts agreements, including both.