Generic Hero BannerGeneric Hero Banner
Latest market news

EU bulk alloy prices rise on high demand, tight supply

  • Market: Metals
  • 14/06/21

Bulk alloy prices in Europe have moved steadily higher in recent weeks, with three of the five major alloys moving to multi-year highs as exceptionally high demand coincides with tight supply in the continent's warehouses.

Prices for high carbon ferro-manganese have hit their highest level since January 2009, at €1,400-1,460/t ddp, with spot demand surging in recent weeks. Likewise, silico-manganese prices are currently at their highest point since November 2008, at €1,400-1,460/t ddp. Ferro-silicon prices are at €1,650-1,700/t ddp - just below the June 2008 high of $1,650-1,800/t ddp, the assessment's highest level since it was launched.

Most market participants expect these levels to be sustained in the near term, mainly because demand from the steel industry has been unusually high for the time of year as mills push to recover lost lockdown volumes and operate at relatively brisk rates throughout summer. The demand recovery has jolted the ferro-alloy supply chain that had adapted to sluggish demand dynamics in the fourth quarter of 2020 and early 2021. And with European warehouses now holding insufficient volumes relative to requirements, buyers have been even more proactive in attempting to lock in additional spot shipments, further amplifying the sense of demand and injecting heat into the market.

"The main challenge is the supply side," a ferro-alloy producer said, adding that "no one has material" and they themselves are "really worried about the security of supply", trying to source additional material from overseas in case it is needed to fulfill contracts. "It is hard to get precise [demand] outlooks from customers. They just say demand is good and ask for more," they said, adding that this lack of clarity is further fuelling supply concerns.

Many European ferro-alloy producers are currently sold out and unable to offer in the near future, and trading companies are unable to secure extra ferro-silicon and ferro-manganese shipments until September, market participants said. Furthermore, imports of several alloys have been scarce for some time, with Brazilian ferro-silicon in short supply and a Covid-19 outbreak in Sarawak disrupting availability from Malaysia.

The lack of availability means spot liquidity has been patchy during the latest rally, and price indications for some products at times have diverged widely as market participants attempted to gauge a volatile market from different vantage points. Sellers continue to test the European market with higher offers, with some now seeking more than €1,550/t ddp for high-carbon ferro-manganese and silico-manganese, while ferro-silicon has been offered at €1,750/t ddp in Spain. Enquiries from Asia and Russia have also started to pick up, having been scarce so far this year, market participants said.

Ferro-chrome enquiries pick up

While much of the interest in bulks has been directed at carbon steel, enquiries from the stainless steel industry are also now picking up.

"A few customers who walked away from me previously have now come back and are asking for higher quantities," a ferro-chrome trading firm said. Others have said they are receiving a growing number of enquiries from buyers for spot tonnages of above 200t.

Meanwhile, ferro-chrome shipments from Asia and South Africa have been subject to more severe delays recently, putting further strain on buyers' inventories. And 18 months of reduced manufacturing activity globally has tightened scrap supply, meaning some stainless steel producers need to use more virgin raw materials, further pushing up demand for ferro-chrome, a stainless steel producer said.

European prices for high carbon ferro-chrome in recent weeks have held steady at $1.13-1.27/lb ddp, supported by rising prices from India and strong demand from Europe's stainless mills. Prices usually start slipping in June-July as spot trade wanes and industrial activity slows for the summer, but the unusual rhythm of demand this year amid Covid-19 has meant prices so far are bucking their typical seasonal trend.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
28/02/25

Low flood risk expected for upper Mississippi River

Low flood risk expected for upper Mississippi River

Houston, 28 February (Argus) — The spring flood risk is low along the upper Mississippi River, as area soils and streams have amble capacity to accommodate seasonal precipitation, according to the National Weather Service (NWS). Precipitation in the Corn Belt has been below normal this winter, keeping the region abnormally dry, the NWS said Thursday in its second Spring Flood Outlook . Minimal snow pack has formed in the Northern Plains following lackluster winter precipitation. Both these factors have reduced the risk for March-April flooding along the upper Mississippi River. Around 0-2in of water equivalent are in the snowpack along the northern stretches of Minnesota, Wisconsin and Michigan. In addition, stream flows are below normal, giving them more capacity to handle spring rains and snow melt. In other areas of the Corn Belt and the Northern Plains, unfrozen soil is expected to soak up precipitation, asmoisture levels remain below normal. Southern Illinois and Missouri have no frozen soil, completely thawing since the previous outlook . Iowa has 16-24in of frozen soil, slightly higher over the past two weeks. Northern states such as Minnesota and Wisconsin still have an average of 24-36in of frost depth. These states have the entire month of March to defrost and gain moisture levels, since the majority of spring planting for the Corn Belt begin in April. Normal precipitation is projected for the upper Mississippi River basin through the first half of March, according to the NWS' Climate Prediction Center. The seasonal temperatures outlook for March-April are near normal, while precipitation is anticipated to be above average. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more
News

UK reviews steel safeguard developing country status


28/02/25
News
28/02/25

UK reviews steel safeguard developing country status

London, 28 February (Argus) — UK government body the Trade Remedies Authority (TRA) is reviewing the developing country exceptions in its safeguard, it said today. The review will likely mean Vietnamese hot-rolled coil comes into the scope of the safeguard. Vietnam had a 10pc share of the UK's third-country steel imports from outside of the EU last year, at just over 42,000t. Any developing country with more than a 3pc share of the UK's non-EU imports will come into the safeguard's scope. Egypt will likely come into the safeguard as well, as it held a more than 6pc share of the UK's third-country imports last year. Market participants have until 14 March to comment on the proposed changes, with the TRA planning to make its statement of intended final recommendations on 28 March. It will make its final recommendation on 30 June. This timeline suggests any changes will come into force from 1 July. UK steelmakers are lobbying for tighter import restrictions in light of fresh 25pc import tariffs in the US and the EU's steel safeguard review. The EU review will "meaningfully" reduce the bloc's imports, several sell-side sources suggest. The idea of blanket tariffs in the UK have been muted by some market participants, but many question whether the UK would take such an approach. It is unlikely that the review of the UK's developing country exceptions will be the only measure the country takes, with other potential restrictions likely in the pipeline. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Bearish Indian steel market awaits safeguard duty


28/02/25
News
28/02/25

Bearish Indian steel market awaits safeguard duty

Mumbai, 28 February (Argus) — Mounting global pressures, including impending US tariffs and risks of more imports from Asia-Pacific countries, have fuelled expectations of safeguard duties to shield Indian steel producers hit by falling prices. The near-term outlook for Indian hot-rolled coil (HRC) prices, which fell by 15pc in 2024, remains bearish in the absence of strong demand from consumers and significant government spending. A drop in exports and rising domestic steelmaking capacities have also weighed on prices, squeezing producers' margins. External pressures have escalated recently as several countries put up trade barriers, leaving top steel suppliers such as China with limited options for overseas sales. US president Donald Trump's move to impose 25pc tariffs on all steel imports from 12 March is the latest in a series of protectionist measures undertaken by western countries to protect their domestic industries. Steel market participants anticipate an indirect impact of these tariffs on India, as Asian producers that supplied to the US market will now increasingly turn their attention to the country. India is considered a bright spot for long-term steel demand, given its infrastructure boom and economic growth potential. Ratings agency Icra estimates about 4mn t/yr of steel supplied to the US by Asian countries such as Japan and South Korea, which until now had preferential market access, could be partly diverted to high-growth markets such as India. Indian steelmakers are leveraging this situation to push harder for safeguard duties to limit HRC imports, particularly from countries with which India has a free-trade agreement (FTA), market participants said. Under the FTA, no basic customs duty is imposed on imports from countries such as Japan and South Korea, unlike China, which incurs a 7.5pc import duty. Japan and South Korea combined accounted for roughly half of India's finished steel imports of 8.4mn t in April-January, according to ministry data. Total finished steel imports rose by 21pc on the year in the past 10 months. Cheaper imports were one of the reasons for 2024's steel price drop, with Argus -assessed ex-Mumbai HRC prices falling to 47,250 rupees/t ($541/t) at the end of December, excluding goods and services tax, from Rs55,500/t at the start of the year. Inflows slowed towards the end of the year as weak steel market sentiment and the ongoing safeguard investigation kept traders risk-averse. But in February, some consumers booked two vessels of Japanese-origin HRC for as low as $480-490/t cfr India for March shipment. Sluggish domestic steel demand in Japan and the blocked Nippon Steel-US Steel merger has raised the possibility that Japan will sharpen its focus on India, a steel market analyst said. Vietnamese steelmakers Formosa Ha Tinh and Hoa Phat have also received their licence required to export HRC to India, raising concerns for domestic producers. Safeguards a 'temporary' measure Indian mills have asked for a 25pc safeguard duty on flat steel imports, but market participants expect the duty, if imposed, is likely to be about 15pc. Once the duty is imposed, steel mills will increase prices imminently by as much as Rs3,000/t, sources said, but the resulting price increase in the trade market is likely to be temporary, especially if domestic demand conditions remain weak. Lower supply from mills has currently kept a floor on HRC prices, which were last assessed at Rs48,000/t ex-Mumbai today. "Safeguard duties will buy time for steel mills over the next few months to hike prices and sales realisations," a north India-based distributor said. "While mills are confident about safeguards being imposed, the government will have to be cautious as it is also focusing on controlling inflation and supporting small businesses." India's HRC export activity has been weak, with mills not making many formal export offers in recent days. This might be the case because they wish to sell at higher prices domestically once safeguards are imposed rather than sell at lower levels in the export market now, market participants said. "Mills' wait-and-watch approach on exports is one of the reasons why I feel safeguards might be coming," a Mumbai-based trading firm said. By Amruta Khandekar Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

GFG seeks partner in Australian coking coal mine


28/02/25
News
28/02/25

GFG seeks partner in Australian coking coal mine

Sydney, 28 February (Argus) — British-owned metals firm GFG Alliance is seeking a partner willing to invest in its Australian Tahmoor coking coal mine, reversing plans to sell the site and pay down debts at its Whyalla steelworks in South Australia (SA). GFG will continue to support and develop the 3mn t/yr Tahmoor mine after the capital raise, the company said on 27 February. GFG paused operations at the mine on 7 February for a month, announcing plans to restart operations at the mine in early March. The company has not revealed any change to its Tahmoor restart timeline. The Tahmoor mine had been providing financial aid to GFG's 1.2mn t/yr Whyalla steelworks until SA's state government took control of the steel plant on 19 February, placing it into administration. GFG closed Whyalla throughout much of 2024, over blast furnace issues. The plant, which the company ran through a subsidiary, owes creditors millions of dollars. Australia's federal government has partnered with the SA government to prop up the site through a A$2.4bn ($1.49bn) support package, including a wage guarantee to staff at the steelworks. Both governments are committed to eventually reopening the plant. Argus ' metallurgical coal premium hard low-vol fob Australia price has been declining over the last quarter, falling from $200.30/t on 27 November to $187.90/t on 27 February, when Argus last assessed it. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Australia's Cobalt Blue to pause mine until prices rise


28/02/25
News
28/02/25

Australia's Cobalt Blue to pause mine until prices rise

Sydney, 28 February (Argus) — Australian metals firm Cobalt Blue is unlikely to further progress its Broken Hill cobalt project in New South Wales until mineral prices rise, the firm told Argus this week. Cobalt Blue in early 2024 paused work on Broken Hill's final feasibility study because of financing challenges, and launched a strategic review of the project looking at the viability of "a condensed, higher-margin project." That review is still ongoing, but it is unlikely to advance the project until cobalt market conditions improve, the company's ReMine Plus manager Helen Degeling told Argus on the sidelines of the Critical Minerals and Energy Investment Conference, which was held in Brisbane over 24-25 February. Cobalt Blue has been mining and processing ore at a demonstration plant at Broken Hill since 2022. But traditional lenders are unlikely to fund the project's next phase — a ramp up to commercial production — at current cobalt prices, Degeling said. Cobalt Blue was using a cobalt price assumption of approximately $27/kg while working on its Broken Hill definitive feasibility study. Argus ' cobalt powder min 99.8pc ex-works China price was last assessed at $22.30/kg on 20 February, down from a high of $102.40/kg on 30 March 2022. Cobalt Blue's analysts expect cobalt prices to stabilise over the coming years, as demand rises and global supply growth slows. But until that happens, the company will focus on developing its Kwinana cobalt sulphate refinery in Western Australia, and the Mount Isa sulphuric acid project in Queensland. Cobalt Blue's Kwinana refinery will start producing 3,000 t/yr of cobalt sulphate and 500 t/yr of nickel metal from the second half of 2027, using third-party mixed hydroxide precipitate (MHP). The company plans to start building the plant in late 2025. Cobalt Blue's Mount Isa sulphuric acid project is at an earlier development stage than the WA refinery. The company's engineering teams have developed novel techniques to extract sulphuric acid from mineral tailings, and are currently testing potential feedstocks for the plant. Mount Isa's final capacity will depend on feedstock procurement and regional demand trends, the company said. Cobalt Blue is not the only critical mineral firm pivoting towards processing projects. Some ACMEIC attendees indicated that financing challenges are also driving vanadium developers to consider prioritising refining work. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more