European ferro-silicon prices, which have been rallying since late October, will climb further near term and potentially challenge the annual peak of ?,?1,275 per tonne on tight supply both in Europe and non-EU countries and a gradual recovery in consumption, industry sources said.
Fastmarkets last assessed the
price for ferro-silicon lumpy basis 75% Si (scale pro rata), delivered Europe at ?,?1,120-1,170 ($1,357-1,418) per tonne ddp on Friday December 11.
Although one supplier reported a deal for several hundred tonnes of standard-grade material for first-quarter shipment above ?,?1,200 per tonne, a level that should push spot prices up by January, the supplier added.
One consumer in Germany reportedly bid ?,?1,150 per tonne for a few truckloads on a spot basis but had that bid knocked back because traders expect prices to surpass ?,?1,200 per tonne in the near term, Fastmarkets heard.
Ferro-silicon producers in Europe are refusing to sell below ?,?1,200 per tonne, however, and are offering alloy at ?,?1,250 per tonne for prompt demand because producers have very little available apart from long-term deals, sources said.
"With the high number of buying inquires in...