The spot price moved higher for the first time in three weeks, hitting a record high since Fastmarkets started assessing the market in January 1997.
Suppliers increased offer prices amid new tenders issued by steel mills, with one tender of more than 2,000 tonnes for delivery in the fourth quarter expected to be agreed at around €1,900 per tonne. Two European producers are competing for the tender, sources said. Another tender issued by a German steelmaker for 200 tonnes was also expected to be settled in the next few days, although there was no estimated price by industry sources.
Steel mills wanting ferro-silicon for October delivery next month will likely be forced to pay more than €1,900 per tonne due to European production being allocated mostly for fourth-quarter settlements.
Low levels of exports are being made available from traditional suppliers in Brazil, Malaysia and Egypt, while Ukrainian production has been increasing slowly and is mostly being sold to Eastern Europe and Italy.
European suppliers are also being tempted to sell into the US market, which is at least $3,000 per tonne (€2,567) in-warehouse, while container costs and freight rates are at record highs.
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