New York (Platts)--7Nov2012/835 pm EST/135 GMT

US manganese alloys prices have fallen over the last week as suppliers cut prices to secure what little consumer business there was in the market, participants said Wednesday.

The Platts assessment for 65% Mn silicomanganese fell to 56.50-58 cents/lb in-warehouse major US hubs on Wednesday from 58-60 cents on October 31. The Platts assessment for high-carbon ferromanganese fell to $1,170-1,180/lt from $1,190-1,210/lt on the same basis.

A steel mill was widely reported to have bought close to 450-500 st of silicomanganese at a price equating to 56.5 cents/lb in-warehouse basis for balance of the year delivery.

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The same buyer was understood to have bought around 300 st of high-carbon ferromanganese at $1,170/lt in-warehouse basis. A producer source reportedly offered the material at $1,200/lt and did not get booked. Other offers were heard at around the $1,180 level.

Another mill was said to have bought four truckloads of high-carbon ferromanganese for December delivery, although there was not much visibility on the price. Offers were heard at between $1,180 and $1,190 and the material reportedly was booked at around $1,170.

However, one source said the price was as low as $1,140/lt, which was dismissed by others as being too low, unless it was for offgrade material.

A trader said that with so few inquiries in the market for manganese alloys, those suppliers with stock appeared to be happy to cut prices just to move material.

"I offered the silicomanganese at 59 cents only to be told I wasn't even close," said a trader, who said he had offered the high-carbon ferromanganese at $1,185/lt.

A second trader said he did not believe there were too many traders who were sitting on large amounts of manganese alloys. "I think most people had sold their manganese alloys on long-term contracts, but there are a few out there who have got some stocks and would be quite happy to move them at this point and take the cash," the trader said.

Meanwhile, a mill buyer said he was not in the spot market, but was putting together his requests for quotes for all alloys for 2013.

"That's keeping me fully occupied at the moment, what with trying to determine the year-end inventories and constant discussions with the meltshop and how much we need on the ground at the beginning of January to keep everything running," the source said.

But the buyer said he had seen some "half-hearted" offers of silicomanganese and high-carbon ferromanganese for immediate delivery this week.

"I had an offer for four truckloads of silico at 67 cents delivered and for two truckloads of ferromanganese at $1,180. I didn't take it seriously, and I never do when they come, because people know that I only come into the market when I absolutely have to," he said.

Low-carbon ferrochrome prices were also under pressure, with a producer and a trader reporting sales at $2.10/lb in-warehouse basis.

"The pressure is coming from Europe," said a second producer. "It's much lower there, which means the price here can't be sustained without attracting a flood of imports."

The Platts low-carbon ferrochrome assessment fell to $2.10-2.12/lb on Wednesday, in-warehouse basis, from $2.13-2.14 on October 31.

--Anthony Poole, anthony_poole@platts.com
--Edited by Kevin Saville, kevin_saville@platts.com

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