There was a lot of buzz today on Ferroglobe’s declaration that it would eliminate discounts on sales of silicon metal. Most sellers confirmed that the company and most, if not all, major suppliers were taking similar stands, but the consumers were quick to point out that no business has been concluded to back it up.
“Right now, I hear that, but with everyone selling at the same level, there is no competitive reason to buy from one over the other,” one buyer noted. “There is no rush to seal of deal since time is on our side. If we guess wrong, we buy flat index–that offer is already on the table. However, if we wait, sooner or later one supplier will crack and everyone will follow. If Ferroglobe doesn’t, I think I can still find enough material and at a lower price. And, if I can’t buy everything from suppliers other than Ferroglobe, those cheaper sellers will get the majority of business and Ferroglobe becomes the supplier of last resort.”
There was also speculation that Ferroglobe and other suppliers were pushing for fixed prices. Those prices ranged from 95¢ to $1.05, depending on who was talking.