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Ferro-alloys suppliers are employing various methods of protecting themselves as they brace for the possible imposition of minimum import prices, sources told Fastmarkets. Ferro-silicon, silico-manganese and ferro-manganese markets were plunged into uncertainty in mid-July when reports emerged that the European Commission’s nine-month safeguarding investigation could result in minimum import prices for all three products.
To date, there has been no confirmation from the EC on specific safeguarding measures, but a number of documents have been circulated among market participants detailing proposed minimum import price levels.
These would represent price increases of more than 30% compared with mid-July, if implemented.
Some suppliers have added sections to their sales contracts, allowing them to offer at today’s prices and retain an option to raise the contract price to the minimum import price if it is implemented, Fastmarkets heard on Friday.
“We added notes that the price could increase to the minimum import price level. Buyers have confirmed they will pay the difference,” one supplier said.
A consumer source confirmed contracts had been issued this way.
This practice is one of the various ways the ferro-alloys industry is navigating the uncertainty.
Another supplier told Fastmarkets it had agreed to pay the difference between its current offer prices and any minimum import prices, rather than passing the cost on to the buyer, while other sources confirmed seeing such agreements.
A third supplier confirmed fresh sales at the level at which the minimum prices are expected to be imposed.
“We sold at the new level without writing in any footnotes,” the source told Fastmarkets.
In recent weeks, many suppliers have hiked prices in anticipation of the measures, while some agreed stable prices with longstanding customers for the time being.
Fastmarkets ferro-silicon lumpy basis 75% Si (scale pro rata), delivered Europe dropped on the high end on Friday August 15 to €1,400-1,550 per tonne ($1634-1809), compared with €1,400-1,650 per tonne on August 11 and €1,250-1,440 per tonne the week before.
Fastmarkets’ ferro-manganese basis 78% Mn max, standard 7.5% C, delivered Europe held at €1,040-1,100 per tonne on Friday, after rising 13.23% the previous week from €930-960 per tonne.
Fastmarkets’ weekly price assessment for silico-manganese lumpy 65-75% Mn, basis 15-19% Si (scale pro rata), major European destinations held at €960-1,050 per tonne on Friday, after rising 6.35% from €930-960 per tonne the week before.
The drop in ferro-silicon prices and the stability in manganese alloy markets came amid lower liquidity week-on-week as many market participants waited on the side-lines due to the uncertainty.
“We would definitely do the same [add price increase clauses] if we were making new sales,” a fifth source said.
A spokesman for the EC told Fastmarkets last week it cannot comment on ongoing investigations.
“The Commission is currently conducting an investigation concerning imports of specific alloy products. Following a comprehensive assessment, the Commission is evaluating the possible imposition of provisional safeguard measures,” the spokesperson told Fastmarkets.
“Should provisional measures be implemented, all interested parties will be afforded the opportunity to submit their comments, which will be duly considered in the final determination. In accordance with the applicable regulation, the investigation must be concluded by November 18, 2025, at which point the Commission will determine whether definitive safeguard measures are warranted.”
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