The Trump Adminstration’s proposed new tariffs on Chinese ferroalloys has FROZEN the market. While China isn’t a major supplier in many ferroalloys, like manganese and chrome alloys, it is the leading supplier of other alloys especially manganese metal and tungsten. However, even where it isn’t a large US supplier, both suppliers and US buyers are predicting a very difficult situation.
Many buyers are afraid they can’t get their contract shipments in on time before the US duties take affect, and more important don’t know how to price their material. And, forget about 2019 supply contracts.
“We don’t know how the loss of the Chinese imports will affect other suppliers,” one consumer admitted. “I am sure that all the other ferroalloy suppliers see much better prices in 2019 and are reluctant to make any commitments. Forget about fixed prices, we are talking about discounts, or even premiums on index contracts.”
Until now Trump’s tariffs didn’t directly affect ferroalloys, this time it does.