US Ferroalloy spot market mired in slump

The North American ferroalloy spot market remains mired in a seasonal slump, though molybdenum suppliers are hopeful of a recovery in pricing soon, after free-market prices recently tumbled to their lowest level in more than a decade.

The North American ferroalloy spot market remains mired in a seasonal slump, though molybdenum suppliers are hopeful of a recovery in pricing soon, after free-market prices recently tumbled to their lowest level in more than a decade.

Molybdic oxide was assessed in a range of $5.80 to $6.20 per lb for the week ending Friday July 31, up slightly from the prior week’s assessment of $5.80 to $6.10 per lb. In early July, moly had sunk to $5.65 to $6.00 per pound, its lowest price since September 2003.

“The oxide market in the [United] States is a little tight, driving the price up a little bit, but even then, people aren’t coming in for quotes. Instead, they’re waiting to see what’s going to happen,” one supplier source told AMM.

The market for molybdenum is relatively small, the supplier noted, meaning it doesn’t take much market activity to drive prices.

Ferromolybdenum spot pricing dipped slightly to a range of $7 to $7.20 per lb from $7 to $7.35 per lb in the previous week.

Most other metals either held steady or dropped slightly, as traders, producers and consumers reported little to no spot activity—and didn’t expect much for the rest of the summer.

High-carbon ferrochrome fell slightly to $1.07 to $1.09 per lb, from $1.07 to $1.11 per lb in the previous week. Low-carbon ferrochrome (0.05 percent) fell to a range of $2.24 to $2.26 per pound from $2.25 to $2.28, while 0.10 percent dipped slightly to a range of $2.07 to $2.10 per lb from $2.07 to $2.12 per lb, and 0.15 percent fell to a range of $2.02 to $2.05 per lb from $2.04 to $2.06 per lb.

High-carbon ferromanganese fell to a range of $850 to $900 per tonne from $860 to $900 per tonne, silicomanganese dropped to a range of $0.48 to $0.49 per lb from $0.48 to $0.50, and ferrovanadium dipped to a range of $9 to $9.20 per lb from $9 to $9.50 per lb in the previous week.

Medium-carbon ferromanganese, low-carbon ferromanganese and ferrosilicon all held steady at $0.90 to $0.91 per lb, $1.05 to $1.10 per lb, and $0.84 to $0.86 per lb, respectively.

Meanwhile, some consumers are already starting to broach the subject of 2016 contracts, although no formal negotiations have commenced, a second supplier said.

This report was first published by American Metal Market
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