MB RESEARCH VIEW – FERRO-ALLOYS: Market positioned for strong start to 2013

The ferro-alloy markets have suffered another difficult month in November, leaving the market oversupplied after demand from steelmakers failed to lend any support, while power-related production cutbacks have yet to commence.

At the Metal Bulletin 28th International Ferro-alloys Conference last week, one industry veteran commented that he has never seen the market in such a  bad state. Overcapacity and sharply slower economic growth have combined to leave ferro-alloys markets oversupplied, with producers competing for market share in a rising-cost environment. Ferro-alloy prices have generally trended stable to lower this month, although we believe prices for most alloys are now at or near a cyclical bottom.  Markets are generally quiet as steelmakers currently prefer to deplete raw material inventories, rather than make new raw material purchases. Ferro-alloy...


November 21, 2012

12:35 GMT