Europe manganese alloy markets surge again on short-covering

The European manganese alloys markets rose even higher over the week ended Friday May 21, hitting price ranges last seen in late 2008, on a bout of short-covering from traders looking to restock ahead of an expected renewal of consumer demand early next month, trade sources have told Fastmarkets.

Market prices for silico-manganese delivered on a spot basis went as high as ?,?1,450 ($1,766) per tonne, a level last reached in October 2008, while high-carbon ferro-manganese spot prices hit a similar high mark for the first time since December 2008, when the price range was ?,?1,100-1,500 per tonne.
Traders started trying to replenish their stocks last week after a short holiday period in Europe the week before. But when it became apparent that there were relatively low stock levels, reduced production in Europe and difficulties in sourcing replacement material, short-covering quickly ensued, a trader said.
"A major European steelmaker bought up a large portion of manganese alloys a few weeks ago, cutting prompt availability," one German trader said.

"Replacement material from outside Europe is costly and difficult [to acquire], given the reduced international production, high sea-freight rates and a shortage of containers," he added. "Moreover,...

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