The US ferrosilicon market suddenly woke up this week and spot...

The US ferrosilicon market suddenly woke up this week and spot prices are at and over a $1 per lb in the intertrade market. Obviously prices users were quoted higher. Sellers who have to deliver first-quarter commodity-grade without sufficient in-country stocks are being forced to cover regardless of price. “I can see prices well over $1.30 in the spot market,” one bullish seller said. There were a few reasons for the spike in prices. Everyone is talking about the drought restrictions at the Panama Canal. Shipments from Asia to the NOLA or the East coast now take a minimum of 90 days and the time keeps increasing as well as the uncertainty on being able to secure a spot.Now only about 25 vessels were going through the Canal and that is expected to keep falling. Larger ships are being turned away. Also the price for passing through the Canal keeps increasing. The number of transits declined 22% in November vs. October and it has just gotten worse. Also the port congestion on the West Coast is also delaying shipments with grain shipments getting priority.There are few uncommitted stocks in the US so there is plenty of room for a price spike.In addition, with Ferbasa, Elkem and Ferroglobe prioritizing specialty grades the availability of commodity-grade 75% ferrosilicon keeps dropping. This is has only been exacerbated by the reluctance of some US mills to buy Russian commodity grade; until the Ukrainian war the Russian material was “THE” commodity-grade source in the US.In Europe, the snowy weather has triggered some delivery disruptions and the premium for spot material keeps rising. There was a wide range in European prices from a low of €1,310 per mt to a high approaching €1,450. Prior to the logistics problems, a large European mill bought 3,000 mt at €1,365 per mt, ddp–1,000 mt for spot delivery and 2,000 mt for January delivery.Erdos also has made it know that it will concentrate on the domestic Chinese market and not be as active in the export market.