Market uncertainty in manganese and silicon alloys

Market activity in manganese and silicon alloys was mild this week, with some suppliers trying to raise prices due to high electricity prices.

Ferrosilicon (75%Si) is quoted at 1900-2165 Euro DDP, with lower quality alloys quoted at the lower level of this range. Suppliers are trying to raise prices and are reporting an increase in enquiries for immediate delivery. European producers are holding out for higher prices because of high electricity prices. However, some traders, who hold goods and are willing to take losses in some cases to gain capital, offer lower prices.

Ferrosilicon (75%Si) from China and Malaysia was quoted at EUR2025-2125 CIF (including all duties), compared to EUR2070-2075 CIF a week ago. Bhutanese and CIS alloys (70%Si) can be purchased at US $1,600-1,840 CIF (1700-1,850 euros including duties).

Trading in the manganese alloy market remains minimal. Silicon manganese (65%Mn; 17%Si) are still quoted at 1050-1200 euro DDP, with more suppliers quoting above 1100 euro DDP in recent days. Alloys from India (65%Mn; 16%Si) is quoted at €1125-1145 CIF.

As a week ago, high carbon ferromanganese (75%Mn) was quoted at 1080-1200 EUR/ton DDP.

Market participants report that they are currently negotiating long-term contracts for next year. One European manufacturer said: "Because of market uncertainty, consumers are demanding a 30-40 percent commitment in annual contracts, which they may forgo due to unforeseen production disruptions, compared with the traditional 10-20 percent."