Ferroalloy market evolution
The prices of all MMPPs continue to gain traction, consolidating new levels in all markets. This week SiMN Standard operations were closed in Germany at the level of € 1,290 per ton, for a volume of 300 tns. In Poland, closures of this same material have already been seen at 1,375 euros per ton, delivered for a couple of trucks. FeMn follows the same trend and low P material closures have been seen at € 1,340 per tonne in central Europe. Nippon Denko has cut FeMn HC production by 30% (approx 40,000 tns) which will undoubtedly put more pressure in the Japanese market The same is happening with refined ferromanganese that are already approaching the level of € 2000 delivered for carbon of 1.5%. This is due to the shortage of material both from South Korea and the lack of Mn Metal from China.
The news regarding the closure of the Monzón plant is also putting pressure on the refined FeMn. Additionally, the Mn ore remains stable and with no signs of rising, which gives a positive differential between ore and ferroalloy. The FeSi continues to gain levels and the closings are already on the way to 1,700 euros / ton delivered in northern Europe. DPRC closed on Friday already at 1670 eur per MT for 300 tonnes of standard FeSi delivered. Regarding the Si, there have been price consolidations at the level of € 2300/2400 for quality 553, and of approx. 100 euros more for 441. No major increases are expected in silicon metal but neither is we seeing much material from Chinese origin entering Europe.
In general, positive news is being seen in the steel sector for large producers such as Arcelor and Acerinox.
https://www.bolsamania.com/noticias/empresas/jp-morgan-anticipa-gran-ciclo-beneficios-arcelormittal-acerinox–7871016.html. Likewise, the construction sector is experiencing an increase in cement consumption, which in the first quarter of the year was 8.4 higher than the same quarter of last year. It must be remembered that this is quite significant since in the first quarter of last year we were not yet aware of the pandemic effect in the European Union