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June ferroalloys price insight

A further recovery in the consuming industries, following the sharp decline caused by the pandemic in the H2 2020, saw demand and prices rise again in June in June in markets globally and Europe in particular.

Market Insights

In the ferroalloys segment, the recovery in demand appears to be outpacing suppliers' capacity. This is borne out by price hikes in selected ferroalloys, which were reflected in the Metalshub price indices.

Manganese and Silicon

The European ferrosilicon market (75% Si min, 1.5% Al max) continued its price rally in June, albeit at a somewhat more subdued pace than before. Although the new psychological mark of €1,700 per metric ton was broken in some commercial offers and contracts, the vast majority of transactions on the Metalshub platform has not reached this level. Nevertheless, the FeSi weighted average price index from Metalshub rose by 6% in June, once again reaching a new high since its launch. It should be noted that the main arguments made by suppliers were material shortages, among others due to lower production by plants in Malaysia amid the coronavirus pandemic, as well as a similar price trend in the related market, the US.

Manganese suppliers in Europe also pushed for higher prices in June, citing a shortage of material on the spot market. However, these attempts were only successful in the silico-manganese segment, as Metalshub data shows. Again the situation in Malaysia and price increases in the USA as well as speculation in Europe contributed to this. The weighted average index for SiMn (65% Mn min, 16% Si min) rose by 8%, while the price of high-carbon ferromanganese (75% Mn min, 8.5% C max, 0.25% P max) on the Metalshub platform did not change significantly during June. Meanwhile, the weighted average price index for manganese metal flakes on Metalshub rose by 16% in June.

Globally, prices for manganese alloys are being supported by rising manganese ore prices. However, there is evidence from the Chinese market that steel consumption growth is gradually slowing and manganese alloy producers, fearful of lower prices for their products, are resisting the rise in raw material costs.

Molybdenum, Vanadium and Chrome

In June, ferromolybdenum was the undisputed price leader in the ferroalloys segment. On the back of lower production in the key regions of South Korea, China and South America, on the one hand, and strong demand from both end-users and traders, on the other hand, ferromolybdenum prices soared, coming close to the 50 $/kg Mo mark. The FeMo price index on the Metalshub trading platform rose by 40% in June. The last time such price level in the segment was observed in 2008.

The ferrovanadium market also saw an increase in prices. Metalshub's FeV price index for Europe was up 2%. By the end of the month, however, demand for the alloy fell sharply in the run-up to the holiday season and quotations rolled back to the level of May.

In a similar vein, the market for low-carbon ferrochrome reached a local high in early June and ended the month with a 1.5% pullback. High-carbon ferrochrome, meanwhile, was rising in price, with HC FeCr average price on Metalshub up 9% during the month on strong buyer demand.

About the Metalshub Price Index.

The Metalshub price indices are solely based on real transactions, bids and offers from the digital Metalshub platform, which is a fundamental shift in price reporting. The information is collected automatically without any journalistic work, e.g. telephone calls to market participants. This methodology minimises the risk of price manipulation and ensures a more robust picture of real market prices.

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