All new alloy production in Inner Mongolia STOPPED, page-69

Ferro-alloy prices forecast to remain elevated through Q2 2021 on supply shortfall and rising demand
April 07, 2021
The latest forecasts from Fastmarkets’ team of analysts are ready to view.
This month’s key ferro-alloy forecast highlights:
• Impressive advances in ore and alloy prices persisted in March, with most markets posting significant price gains. Strengthening demand from steelmakers along with supply shortages and depleted inventories in numerous markets, as well as freight and transportation issues, continue to propel prices higher. We are forecasting upward pricing momentum to continue into Q2 2021 across most ore and alloy prices as we do not see a remedy to supply-demand imbalances in the near term.
• European ferro-silicon producers are offering alloy above the current range for prompt shipment, with suppliers targeting €1,600 per tonne since they have little to spare outside of second-quarter allocated material. European imports are at a reduced level, with few imports arriving from Brazil, where output is going to the domestic market or to North America. Firm Asian demand and the container shortage is deterring exports into Europe from Asia. There has also been reduced production in Ukraine due to longstanding political issues. Industry sources in Europe say they have heard of a restart in Ferroglobe's production in recent weeks, but only at a low level. If so, it is likely that Ferroglobe is only producing relatively small amounts of ferro-silicon so as not to upset the price rally. US prices have also increased sharply over the past month, and we understand suppliers are targeting $1.40 per lb. We are forecasting further gains in ferro-silicon prices in Q2 2021.