European ferro-titanium suppliers dropped their offer prices and concluded deals at lower numbers, both on a spot and longer-term basis, which, in turn, encouraged ferro-alloy makers to back away from the scrap market and prompted slightly weaker scrap offers, market participants told Fastmarkets.
Persistently tight scrap supplies, however, have supported scrap prices from steeper price cuts, sources said.
Most domestic third-quarter delivery settlements of ferro-titanium to steelmakers are yet to be negotiated, with market participants expecting the full return of consumers next month. Scrap trading activity has also been quiet lately, with weaker ferro-titanium prices knocking scrap offers slightly and alloy makers balking at high costs for their smelting feed to protect their profit margins.
“We think there’s a current surplus of alloy in Europe, particularly the lower quality Russian-produced material, which is trading at anything up to a $1.50-per-kg discount. That’s obviously having a negative effect on any spot...