[Ferro-alloys.com]Suppliers were arguably more confident that formula discounts would be lower for early 2014, as many looked to close long-term contracts over the next several weeks. Market participants in the manganese alloys market reported that discounts would be below 5% after seeing recent levels as high as 6%. General market sentiment implied that a sustaining demand and prolonged losses among many producers would lead to rising spot prices in the near-to-medium-term, although when the market would turn was unknown. While demand is not likely to rise considerably, most felt that 2-3% growth was likely. In the spot market, there were few sales witnessed for high-carbon and refined alloys over the past week. Even though steel markets across Europe and the US have continued to improve, output is still unimpressive and forecasted demand in the bulk market would likely reflect this.

 

The US silicomanganese spot market was quiet over the last week, but many felt that Nucor’s large contract requirements would have an impact on the spot side of the market moving forward. Several other large mills had RFQs out to suppliers, but outside of those contract negotiations, volumes in the spot market were light, and prices remained flat.

 

The US and European ferrosilicon markets were still the topic of discussion among market respondents. Some traders reportedly dumped their positions in the market, particularly in the US, and numbers from Chinese traders have ranged widely. Even though month-on-month gains have been seen for Chinese imports, there is still a large gap in apparent supply and demand.

 

Overseas, ENRC’s ferrosilicon production in the third quarter of 2013 was 9,000 mt, down 30.8% from 11,000 mt in the same 2012 period. Sellable output was 8,000 mt, down from 12,000 mt. The company’s silicomanganese production was up 10%, however, at 44,000 mt. Sellable production was 40,000 mt for the quarter.