[Ferro-alloys.com]Market participants in the US were scrambling to get product to customers as winter weather wreaked havoc across the country. More than 12 inches of snow accumulated across the Chicago metro area and blanketed a heavy layer across much of the midwestern and northeastern US. Meanwhile, over half of the country's population was also battering frigid temperatures not witnessed in the last 20 years. In some places, wind chill temperatures reached negative 50 degrees Fahrenheit (-45 degrees Celsius). In many locations, including Pittsburgh and Chicago, the daily high temperatures did not surpass zero degrees Fahrenheit (-18 degrees Celsius). As a result, many highways and secondary roads were closed, causing a backlog of deliveries and shortage of trucks. In addition, many port terminals were frozen over and the river system through the midwest became choked with ice. While most waterways were still passable, barges were slowed and the lock systems were clogged with ice flows. Many expected that problems would persist into mid-January until mills and warehouses are caught up on lost time and orders.

 

Despite the weather, spot activity has increased for many market players. While many mills in the US and Europe depleted much of their stocks leading up to year end in 2013, many buyers were back out in the market for immediate delivery for several bulk ferroalloys. In the US, there was heightened activity for silicomanganese, some ferromanganese alloys, as well as ferrosilicon.

 

For silicomanganese, there were some mills still out for the balance of their first quarter requirements, which were not met via contract agreements. Current bids from several suppliers reach upwards of 58 cents per lb. In addition, one US mill booked SiMn from a steel-owned trading company, slightly under the current CRU Ryan’s Notes range of 55-56 cents per lb, ex-warehouse Pittsburgh and Chicago.

 

Several key market players warned that the US supply was severely limited for any mills entering the spot market. Most importers and sellers noted that their volumes were largely reserved for contract customers. In Europe, there were some inquiries for material, including refined manganese alloys, but most sales were not expected to close until January 13 or later. Sentiment among Europeans was more upbeat to start off the quarter given some mills'current RFQs and inquiry volumes. In the US, high-carbon ferromanganese prices inched higher to $1,015-1,020 per lt, ex-warehouse as a US-based buyer closed on material for immediate delivery. There was also some inter-trade business booked at the new low, which end users should expect a mark- up.

 

The US ferrosilicon market was also a bit more active with buyers reaching out to sellers for volumes ranging 40-400 tons. Prices ranged from 93-103 cents per lb. The larger volumes of 100-400 tons were booked in the 97-103 cents per lb, range. Another US mill also booked 200 tons at 93 cents per lb, ex- warehouse.

 

In Europe and the US, nearly all of the market players reported optimism, and business should remain firm and active through the end of April, based on current predictions. Buyers looking to import legal, duties paid Chinese ferrosilicon, based upon current FOB prices of $1,430 per mt, could expect prices to surpass 97 cents per lb cif US port, for example.