What’s DJJ up to?

The buzz in the bulk ferroalloy market is DJJ and its offering of South 32’s manganese products in the US. While no one disputes that DJJ is qualified to sell the products and is very knowledgeable about the manganese, it is that DJJ is owned by Nucor, which is not only South 32’s largest US manganese customer but also a major supplier to all the North American steel mills.

In the past, Nucor often included a line in their bulk ferroalloy tenders that which included DJJ getting material for resale. In almost all case, the suppliers agreed to sell to Nucor but didn’t offer any material to DJJ, citing a conflict of interest. “Why would I sell to DJJ so they could use the same material against me,” one merchant told me. One merchant said that when he sold to Nucor, the purchase order was sent from DJJ which theoretically made Nucor privy to all the sales information including price; it is not known if a Chinese wall has been erected between DJJ the trader and DJJ the supplier to Nucor.

Now other US steel mills have expressed concern, saying that Nucor could have an direct impact on their sales price and any indexes and that at the sale information could be shared with Nucor, a direct competitor.

How this plays out is anyone guess, but it does create a lot of chatter.


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8 Comments on "What’s DJJ up to?"

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Jason H

I am a Ferro silicon producer

This does not make sense

No FERROALLOY producer would select a customer to represent them -especially one of their larger customers

The agent should have an interest to get prices higher while this new agent would have an interest to get prices lower in order to buy lower for themselves

And then you have competitors of nucor who would obviously have a competitive issue with their competition knowing their prices ??


Is this even legal ?
Isn’t it a conflict of interest


Not all competitors are equal


That’s something a lawyer will have to decide. Not in my pay grade

Jack Caithness

If you were looking for an agent to represent you and you only had a handful of viable customers then surely if one or two of the customers let alone more had a problem with an agent and saw it as a conflict then you would think this would cause you to look elsewhere for representation

This is just plain stupid

j. p

It doesn’t sound like south32 thought this through -they are going to be taken advantage of

This is Bad news for North American simn , hcfemn and mcfemn prices

Djj will sell to nucor on annual formulas based off an index and then push the prices down with agency based commission sales to small users

Best situation for nucor – this is a fantasy situation for them


The us govt will look into this

This will be reported to the SEC and FTC

The suspicion already exists that ties djj to potentially manipulating the prices for nucor

One major manganese producer has already spoken and got agreement from the producer of the major market index in the USA that they agree not to use djj pricing on alloys as an indicator of the alloy markets


Looks like south32 wants to play with us antitrust laws ?