This is a misconception that DJJ’s involvement in Nucor’s ferroalloy purchasing just started. Exactly the opposite; DJJ has been involved for over three years. It started with Nucor tendering for ferroalloys, like silicomanganese and ferrosilicon. While there was a line for every one of Nucor’s plants, there was also a line item for DJJ. As a result, a supplier could agree to sell a specific amount of the product to DJJ to sell to a third party.
I don’t personally know of any supplier who agreed to supply DJJ, claiming it was a conflict of interest, i.e., it would be competing against its own sales to other mills.
However, there was a more immediate concern; the seller had to send its purchase order to to DJJ not the individual mill. This trigger the concern that DJJ was doing more than paying the bill but also gaining invaluable market information.
The newest problem is that by acting as a seller of a big chuck of US manganese alloy supplies–South 32 is no longer selling to Nucor plants–it will use that for market related purposes.