The beginning of 2023 was not accompanied by any noticeable price fluctuations in the markets of manganese and silicon alloys in Europe amid the seasonal decrease in demand and stabilisation of the situation in the energy market. Meanwhile, several factors in the global market triggered a real price rally in the noble ferroalloys segment, primarily molybdenum and vanadium.
Meanwhile, the EU energy price situation is increasingly returning to normal, thanks to a relatively warm winter and the successful diversification of energy sources following the withdrawal of gas supplies from Russia. For example, spot electricity prices in Germany were around 115-120 €/MWh in January, which is almost five times lower than the peak in August and 30% below January last year.
However, prices for manganese and silicon alloys are currently 2 to 3 times lower than a year ago, and ferrochrome quotes are broadly in line with January 2022, while only noble ferroalloys are now significantly higher.
Meanwhile, the Metis all metals index recorded a slight decline in the value of a basket of all ferroalloys and metals price indices in January. With the end of holidays in Asia and the likely seasonal increase in demand for ferroalloys in Europe in March, a return to an uptrend in the markets cannot be ruled out.
