CRU: US BFA prices plummet with fierce sales competition

This news item was first published by CRU. To learn about CRU’s global commodities research and analysis services, visit www.crugroup.com.

Relative strength of US steel attracted ferroalloy competition

US steel mills have received a boost from lower import levels because of sweeping tariffs this year. However, demand remained moderate in most sectors, aside from data center construction, after the summer.

With limited imports and increased domestic capacity, US mills have produced 3% more crude steel year on year (y/y) through Nov. 1, according to American Iron and Steel Institute data.

The relative strength of the US steel market and higher ferroalloy prices have attracted competitively priced manganese alloy imports, leading to a plunge in prices.

US ferromanganese prices crashed with renewed spot activity

CRU’s US high carbon ferromanganese (HC FeMn) October average price dropped by 9.6% month on month (m/m), to $1,265 per long ton (lt), from $1,400/lt, in September.

Following weeks of illiquidity, some consumers entered the spot market to purchase Q4 requirements. Sellers lowered their offers to reflect recent declines in other major markets such as Europe, India, and China, and some who were eager to move material ahead of year-end offered below replacement cost.

After remaining unchanged since June due to a lack of spot activity, CRU’s medium carbon ferromanganese (MC FeMn) average bi-weekly price range plunged in October to 90-100 cents per pound (c/lb), from 115-120c/lb, a 20% decline. The monthly average dropped to 110c/lb, from 117.5c/lb. Spot illiquidity for refined manganese has plagued the market this year, resulting in sharp adjustments to the index prices when spot transactions occur.

Similar to the situation with HC FeMn, a few buyers entered the spot market for Q4 requirements, and sellers cut prices in line with lower global prices. There was some renewed spot activity for low-carbon ferromanganese (LC FeMn) at the end of October after market participants noticed the large drop in MC FeMn prices. Sellers dropped their offers accordingly. The bi-weekly price assessment fell to 117-12 c/lb, from 138-140c/lb, with the monthly average falling 3.2% to 134.6c/lb.

US silicomanganese (SiMn) prices were flat during the month after having adjusted lower in September. The bi-weekly price was unchanged in October at 58-60c/lb, with index-relevant business transacting regularly within that range.

Electrolytic manganese metal (EMM) prices also declined in October as sellers competed aggressively for the few spot opportunities. The bi-weekly price assessment fell to 126-130c/lb, from 128-138c/lb. Although traders told CRU that any sale below 130c/lb was almost unprofitable, many were willing to go lower to move material, given that the market is oversupplied.

US FeSi prices remained volatile

After edging higher in September, US ferrosilicon (FeSi) prices declined in October, averaging 117.7c/lb, a 2% decrease m/m. Prices stayed in a wide range, with a large gap between prices for large- and small-volume business. Traders were generally unsure of replacement costs with President Trump’s changing tariffs, which pushed them to offer based off inventory costs. Some sellers increased their offers as inventories and imports have started to fall.

All prices are ex-works unless otherwise noted.

Lauren Corl

Lauren Corl is a senior analyst at CRU based in Pittsburgh. She joined CRU as a ferroalloys prices analyst in January 2022, covering price assessments for the US ferroalloys market, including silicon metal, chrome, molybdenum, nickel, noble alloys and minor metals. In 2024, she began assessing CRU's US bulk ferroalloys prices and became editor of the Bulk Ferroalloys Monitor. Prior to joining CRU, Lauren worked as a sales representative at Hickman, Williams & Company, a supplier of ferroalloys for iron and steelmaking. She holds a Bachelor of Science degree in Business Management from Pennsylvania State University.