Montreal port strike could disrupt FeNb exports

Workers at Canada's Port of Montreal have gone on an open-ended strike since 26 April over contract issues and proposed changes to their working hours, potentially disrupting exports of niobium products to European markets.

It follows a 12-day strike from 10-21 August 2020 that created several weeks of backlog across bulk shipments and containers. The disruptions caused by that strike did not have much impact on ferro-niobium prices, which held steady at around $35-35.50/kg du Rotterdam in mid-August, with demand also under pressure from Covid-19 restrictions.

Spot prices have since risen by around 17pc to $40.20-42.50/kg du Rotterdam on rising demand from steel mills, tight supply and rising quarterly contract prices. For now, market participants expect the strike to have little impact on ferro-niobium prices despite supply tightness, as Niobec — the key producer shipping through the Port of Montreal — has not been offering spot shipments lately and might be able to ship from alternative nearby ports to satisfy longer-term contracts. Niobec did not respond to a request for comment by the time Argus went to press.

Canada's minister of labour Filomena Tassi has since filed a back-to-work bill to compel workers to resume operations, much to the Canadian Union of Public Employees' (CUPE) discontent. "I have no hope there will be a resolution today. The employer will just sit on their hands and wait to see the content of Minister Tassi's special legislation," CUPE representative Michel Murray said on 23 April.

By Maximilian Court