[Ferro-Alloys.com]European silicon manganese prices were heard lower as oversupply saw aggressive offers into tenders, sources said.

European 65:16 silicon manganese assessment was at Eur730-Eur750/mt ($810-$830) from Eur750-Eur780/mt Thursday, with deals reported of 1,000 mt to a German mill at Eur738/mt DDP and the same volume concluded at under Eur740/mt to a mill in Northwest Europe.

The current price range is close to a historic low of Eur690-730/mt last seen on June 7, 2007.

"Replacement costs are high, so only European producers can do it," one European trader said, adding SiMn 65:16 is being offered at Eur800/mt in-warehouse Rotterdam from South Africa or Eur790/mt same basis from India.

Sources said the low prices suggested producers may be holding high inventories and were looking to liquidate.

The trader said he offered on the second tender, but was nowhere near the concluded level.

A second European trader agreed the prices were aggressive and traders could not compete with them.

He noted there was also less demand from mills resulting in increasingly aggressive offers for each tender.

"In Europe there is no demand for steel, also [in] Turkey," he said.

This was confirmed by an Indian alloys producer who said it was seeing fewer inquiries from European mills and was focusing on domestic demand.

"There are not a lot of tenders in Europe, and Indian domestic demand is better for us," an Indian producer said.

• [Editor:Sophie]