[Ferro-alloys.com]Market participants were still looking for direction over the past week in regard to ferrosilicon, particularly in the US, as there were very few players with strong confidence in the direction of prices in the near future. Major producers and sellers’ agents, however, noted no urgency to book material at lower prices, and most anticipated more of the same moving into the second quarter.

 

Some US consumers were relieved when the US Department of Commerce announced 0% dumping duties on Russian ferrosilicon for its preliminary determination, although the final determination will not be announced until mid-summer given the recent delays. The anticipation does little to provide clarity in the market, however, and some felt that the current situation has created a dichotomous market, where traders may shed volumes at lower prices while principal importers and producers hold tight to their spot volumes and higher asking prices.

 

Furthermore, despite a general slowdown in inquiries for ferrosilicon in the US over the past several weeks, there were a few concluded sales noted in the past seven days. There has been limited transparency, however, on some of the recent deals, as many have questioned product specifications or the motivation behind some sellers. Meanwhile, there have been two mid-size deals at 97-98 cents per lb, ex-warehouse, and another substantial sale at 99 cents per lb, ex-warehouse. There were also several small, one and two truckload sales, at 100-101 cents per lb, ex-warehouse.

 

One vendor commented, “I’m consistently selling at [97-100 cents/lb] to many typical buyers, and for large volumes, so I do not understand why traders need to undercut the market so much to conclude a sale.” Another added, “It sends a huge red flag when a seller or even the buyer cannot talk about his or her specifications. I highly question any buyer that can tell you they honestly do not know the quality and specs of the material that they just bought.”

 

Meanwhile, Russia continued to be a theme among market participants over the past week, both in regard to the approaching final determination on antidumping duties for Russian ferrosilicon and in regard to the political situation between Russia and Ukraine with respect to the Crimea region. As previously reported, a limited number of sellers, who noted having stock of Russian ferrosilicon, commented that, while there was neither a reason to be cautious nor a cause for alarm, they have begun to ship Russian material out of their warehouses ahead of other material.

 

In the European Union, prices were wider over the past two weeks, although most business continued to conclude within the current range €1,125-1,150 per mt, DDP, for the bulk of orders ranging from 100 to 1,000 mt. Some buyers reported that a few traders were more aggressive in their offers, yet some producers noted no availability into the spot market for the second quarter.