FOCUS: Europe FeSi market looks vulnerable to more losses

The recent decline in European ferro-silicon spot prices, which had been weakening in line with demand due to a slump in steel production over the course of several weeks, has paused; but the stabilization might be brief due to the approaching seasonal slowdown in July and August and an increase in lower-priced export offers into the EU.

Thus, the bias in the market on prices is pointing down for the near term.
Some international ferro-silicon suppliers have been exporting, even in the midst of pandemic-related lockdowns in Europe that have steepened price losses while stocks mounted at European ports and warehouses.
Fastmarkets’ price assessment for ferro-silicon lumpy basis 75% Si (scale pro rata), delivered Europe was at €900-940 ($1,010-1,055) per tonne on Friday June 19, unchanged from the previous week. The market last moved below this level in November 2019, and any move below €900 per tonne on the low end would take the market to a point last seen in April 2016, when the price was assessed at €890-940 per tonne.

Steelmakers in Europe have cut...

Published

Declan Conway

June 22, 2020

22:43 GMT

Galway, Ireland