Fire at Elkem plant unlikely to impact FeSi prices, speculations possible
2023-12-11
On Sunday afternoon, December 10, it was reported that a raw materials warehouse at Elkem Salten’s Norwegian plant in northern Norway had caught fire. The company reported that the fire affected, among other things, carbon materials, which are highly flammable. The plant’s operations were completely shut down as a precautionary measure.
“We are still at an early stage and it is too soon to be precise on any long- term impacts on production or physical assets. Health, safety and the environment must come first. We will come back with additional updates once we have more information on the totality of the situation,” plant manager Ove Sørdahl stated.
Market participants interviewed by Metis also find it difficult to predict the impact of the incident on the ferrosilicon market in Europe. “In recent weeks, suppliers have lacked the fundamental arguments to support the bullish trend, so the shutdown of one of Elkem’s plants may give a boost to prices,” one seller expressed a cautious view. “There will certainly be those who will try to speculate on this topic. However, we do not yet know how long the shutdown at the Salten plant will last, and it should not be forgotten that Elkem has reserve furnaces that can be brought on line,” another insider emphasises.
Elkem Salten is one of the world’s largest silicon plants exporting silicon and silica fume products worldwide. With its three furnaces, the plant has an annual production capacity of 128,000 tonnes, of which silicon capacity is 80,000 tonnes.
POSCO’s tender fuels bullish expectations in European Mn metal market
2023-12-14
The outcome of POSCO’s recent tender for manganese metal (Mn metal) has sent ripples through the global market. With prices surpassing expectations by $40-60/tonne at least, European Mn metal suppliers may explore higher pricing in the upcoming offerings.
Specifically, in its latest tender for Mn metal, South Korean steelmaker POSCO accepted the price at $1,805/tonne CIF South Korea, an increase of $140/tonne from October bidding price of $1,665/tonne CIF. “Given that the prices exceed market expectations, the guess is that prices will certainly not drop before the Chinese New Year,” an international trader commented. “It is evidently a very high price,” another trader echoed the sentiments. The final purchase volume amounts to 1,501 tonnes, with the shipment scheduled for January.
Earlier, prices for Mn metal flakes (Mn metal 99.7% min) for immediate shipment have surpassed $2,000/tonne DDP in some instances. However, for first-quarter shipments, workable prices have been trending towards $1,900-1,950/tonne DDP, with a few exceptional deals falling below the lower end of the range. Recent offers for Mn metal from China have been reported at $1,830- 1,850/tonne CIF Rotterdam, with the lower end increasing by $30/tonne over the past week.
Liberty Steel to restart BF in Czech Republic
2023-12-14
Liberty Steel’s Ostrava plant in the Czech Republic, a subsidiary of UK- based Liberty Steel, plans to restart its blast furnace (BF), No. 3 in January 2024 and to increase production.
As Metis reported earlier, on October 23, the company announced the shutdown due to falling demand in Europe. Initially, it was planned for a two-week period.
Additionally, in September 2023, Liberty Ostrava began the process of shutting down one of its three coke oven batteries, VKB No. 11. The company considers it as an important step towards the transition to environmentally friendly steel production. Additionally, the decision is influenced by the perception that the unit is progressively unprofitable due to oversupply in the market.