European base alloy market begins to calm down in summer

The third quarter contract for silicon manganese in the European market is about to end, and as summer vacation approaches, spot trading is gradually fading. With an oversupply of alloys (especially due to the presence of many quotations from third countries), this continues to put pressure on prices.
According to information obtained from Hainan West Asia, the bidding price for silicon manganese (65% Mn; 17% Si) in the third quarter was 910-930 euros DDP, while a small amount of spot trading price was 950-1005 euros DDP. The quotation range for high carbon ferromanganese (75% Mn) is 920-1000 euros DDP, with some suppliers offering even higher prices. However, it is currently difficult for this material to exceed the price of 950 euros DDP for sale.
In the field of ferrosilico, nno price changes have been observed: as before, the quotation range for this material (75% Si) is within the range of 1450-1550 euros/ton DDP, but according to some reports, the single transaction price for the next quarter has dropped to 1420 euros DDP.
Many silicon and manganese alloy suppliers have stated that the contract results for the delivery quarter are not ideal: in addition to low prices, the procurement volume is also relatively small.
A trader said, "Some consumers are not willing to purchase in advance, but only when needed to verbally lower prices when the market drops. Market participants do not rule out the possibility that prices have not yet bottomed out, and are expected to further decline, especially in ferrosilicon. Hainan West Asia predicts that manganese alloy prices will rise in the fourth quarter, but ferrosilicon prices may still fall.
One of the major European manganese alloy suppliers pointed out that "market improvement will not occur until late summer or even early next year. Consumption is weak, not only in Europe. We will not reduce production, largely depending on the reactions of Indian and Ukrainian producers to the increase in electricity prices.
For further information of market trends and prices, please get in touch with Hainan West Asia Group .

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