In February, the bulk ferroalloy market was quiet, and there were no significant price fluctuations compared to the previous month. On the other hand, in the precious metal alloy market, price speculation continues, most importantly causing molybdenum prices to soar. However, by the end of February, quotes pulled back slightly.

Market insights

February 28, 2023

At the same time, the dynamics of global steel production are still not optimistic. According to worldsteel, carbon steel production fell 3% year-on-year to 145.3 million tonnes in January. Only the Middle East (+19.7%) and China (+2.3%) are among the countries with positive growth drivers for the first time in six months. The world's major economies ended January with a marked decline. EU steel production plunged 15.2% (especially Germany, which plunged 10.2%) to 10.3 million mt, and North America plunged 5.6% to 9.1 million mt.

However, market participants remain optimistic. In recent months, some plants in Europe have announced that they are restarting their furnaces, which could lead to increased consumption of raw materials, including ferroalloys, by the end of the quarter.

The Metalshub All Metals Index rose 15 points in February due to higher prices in precious metal alloys. The seasonal recovery in demand in March-April is expected to support steel and raw material prices.

Suppliers try to increase the price of FeSi and HC FeMn by shipping in time to reduce alloy inventory.

European ferrosilicon producers cut production due to sluggish demand.

After the new furnace of the YDD plant is put into operation, the supply of silicon alloy in Kazakhstan may increase.

Global manganese ore prices have risen.

Eramet set the price of Gabonese manganese blocks shipped to China at $5.8/mn in March, up 30% from December.

Malaysian high-carbon ferromanganese producer halved production due to weak demand.

Precious metals and chromium alloys

The strong earthquake in Turkiye caused disruption to chromium ore shipments, but so far, contrary to expectations, has not affected ferrochrome quotes.

Ferromolybdenum prices in Europe soared last month as traders speculated about supply shortages.

As domestic demand increases at the end of the holiday, Chinese ferrovanadium exporters have shifted some sales away from foreign markets, causing prices to rise in Europe.

Russia's leading tungsten producer ceased an asset for environmental reasons.

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