[Ferro-alloys.com] The bulk ferroalloys market closed off the year with mixed emotions. While most market participants seemed bullish on prices in the short-term, others offered a cautiously optimistic sentiment to the market, particularly in regard to demand. Expectations that demand will grow 1-2% in 2014 have been commonplace, and perhaps many market players are simply repeating the same figures because, in reality, no one is willing to be overly bold in their predictions. In Europe, while prices have been firm for several bulk ferroalloys, many global players are still worried about the fiscal crisis across many European countries. Little is known as to what rollover effects such uncertainty will have on the health of the euro zone and how they will play on the region’s largest steel producers. Meanwhile, costs of production are rising, and suppliers have been firm during negotiations, both in terms of long-term supply agreements and spot sales.

 

Meanwhile, in the US, while the country has passed a new budget and the Fed has begun tapering its bond purchases, many wonder what effects a rise in interest rates, particularly in the housing sector, will have on the greater economic situation. Expansion in infrastructure projects and public works will also be closely monitored, particularly with expanded funding hitting the treasuries in some states beginning in 2014. Week-on-week, however, prices for bulk ferroalloys held firm as the majority of market participants were out on holiday. Negotiations on long-term agreements via formulas and fixed prices have closed for most large mills, while awards to suppliers may trickle out over the next several weeks for those mills yet to pen any deals.