European Ferroalloys Price Insights - February 2023
In February, the bulk ferroalloys market was quiet, with no noticeable price fluctuations, as was the case the month before. In the noble ferroalloys market, on the other hand, price speculation continued, leading above all to a surge in molybdenum prices. By the end of February, however, quotations slightly receded.
Meanwhile, the dynamics of global steel production are still not encouraging. According to worldsteel, carbon steel output fell 3% year on year to 145.3m tonnes in January. Only the Middle East (+19.7%) and, for the first time in six months, China (+2.3%) were among the countries with positive growth dynamics. The world's leading economies ended January with a marked decline. In the EU steel production collapsed by 15.2% (Germany, in particular, by 10.2%), to 10.3m tonnes, in North America - by 5.6%, to 9.1m tonnes.
However, market participants remain optimistic. Within recent months, a number of plants in Europe announced that they are restarting furnaces, which by the end of the current quarter may result in increased consumption of raw materials, including ferroalloys.
The Metalshub all metals index rose 15 points in February on the back of a rise in the price of noble ferroalloys. A seasonal recovery in demand in March-April is expected to support steel and raw material prices.
Metalshub All Metals Index
Manganese and Silicon
Suppliers tried to raise FeSi and HC FeMn prices by appealing to low inventories of alloy with prompt shipment.
European FeSi producers cut output amid low demand.
Supply of silicon alloys from Kazakhstan may increase after new furnace at YDD plant goes on line.
Global Mn ore prices are rising.
Eramet set March prices for Gabonese manganese ore lumps to China at $5.8/Mn% content, up 30% from December.
Malaysian HC FeMn producer halves output on poor demand.
Noble and Chromium alloys
Severe earthquake in Turkiye halts chrome ore shipments, but so far, contrary to expectations, has not affected ferrochrome quotations.
FeMo prices in Europe have soared last month amid traders' speculations on short supply.
With domestic demand rising at the end of the holidays, Chinese FeV exporters have redirected some sales from foreign markets, leading to higher prices in Europe.
Russia's leading tungsten producer halts one of its assets for environmental reasons.
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