Partial economic recovery impacted ferroalloys prices in December
Partial economic recovery across several regions and increased demand in sectors such as the automotive and white goods sector impacted the month of December. In the last month of 2020, the prices on ferroalloys increased rapidly, a trend that stabilised going into the new year.
One of the ferroalloys that experienced the highest price increase is Manganese Metal Flakes. Throughout December and into the first week of January, the price went up by 9.7%, as documented in the Metalshub weekly price index. In addition to an increase in end-users' demand, the prices were supported by the growth in the biggest exporting market, China, amid higher raw material costs and rapid international freight rate increasing.
The same tendency can be seen with the pricing of Ferrosilicon. Metalshub FeSi price index went up during December, however, with a more moderate increase of +6.4%. Going into January, the Ferrosilicon prices stabilised. The fervor of suppliers seeking to increase their offer prices every week was constrained by quarterly contracts of large consumers in Europe, which were signed at noticeable discounts.
The same was the case with Ferrovanadium and Ferromolybdenum prices, which increased by 4.5% and 2.9% respectively. The revaluation of the euro against the US dollar throughout December has driven the price increase of USD quotes for the alloys– Metalshub USD indices showed a 5.7% and 3.3% increase of prices for Ferrovanadium and Ferromolybdenum respectively. In both markets, prices were heated by increased demand from consumers and continuous alloys price-increases in China.
In contrast to the other ferroalloys, the prices for Low Carbon Ferrochrome and High Carbon Ferromanganese have moved sideways on the Metalshub platform, in December. Both categories showed demand-supply balances, though growing demand has supported moderate price increases going into 2021.
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