In a challenging turn of events for ferroalloys suppliers in Europe, the
June quarterly campaign has failed to stimulate demand from end
users, exacerbating an already sluggish market. With customers
throughout Europe, having maintained an aggressive approach,
relentlessly seeking discounts during negotiations, most prices for
ferroalloys have continued their downward trajectory.
The global steel industry continues to face unfavourable market
conditions, impacting its performance. According to the World Steel
Association (worldsteel), global steel output declined by 5.1% YoY and
0.2% MoM to 161.6 million tonnes in May of the current year.
In May, Asia and Oceania produced a total of 119.5 million tonnes of crude
steel, representing a 6% YoY decrease. China, in particular,
experienced a 7.3% YoY decline, with its output reaching 90.1 million
tonnes. Japan produced 7.6 million tonnes, down 5.2% YoY, while
South Korea’s crude steel output decreased marginally by 0.1% YoY to
5.8 million tonnes. Conversely, India increased its production by 4.1%
YoY to 11.2 million tonnes.
US steel mills specifically decreased their production by 2.3% YoY to 6.9 million
tonnes. Meanwhile, CIS countries are reported with a fixed steel
the output of 7.9 million tonnes, showing an 11.5% YoY increase, with
Russia’s production alone is estimated at 6.8 million tonnes, up 8.8%
YoY.
Turkey’s production declined by 10.4% YoY to 2.9 million tonnes,
while Iran’s crude steel output amounted to 3.3 million tonnes, up
8.8% YoY.
Manganese and Silicon
- Despite the best efforts of European ferrosilicon producers,
prices having fallen below EUR 1,500/tonne DDP by the end of
June. - Aggressive offerings drove the downward trend from
traders, who aimed to reduce their stockpiles. - Manganese metal prices in Europe reached the bottom amid
poor demand. - Seasonally low demand in China caused a decrease in global
Mn ore prices.
Noble and Chromium alloys
- Despite low demand, ferrovanadium suppliers have been
hesitant to lower their quotations. - The European FeMo market was quite volatile in June, as
suppliers took advantage of opportunities to raise their prices.
Improved business conditions in Asia, coupled with higher global
prices and reduced supply contributed to occasional successes
for molybdenum suppliers. - Having failed to get the desired support from firm feedstock
prices, European suppliers of ferrotungsten (FeW) were forced to
step back lately due to sluggish demand. - European HC FeCr benchmark plunges 12% for Q3.
- Spot ferrochrome prices move down amid seasonally poor
demand and a similar trend in the Asian market, particularly in
China.
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