Ferrochrome

摘要

Following the recent rally, spot prices for high carbon ferrochrome and charge chrome reached a plateau in May. With buying activity relatively quiet, the upward momentum, which has propelled prices higher for more than two years, has faded and prices in all of the major consuming regions have stabilised at a high level. In Europe, spot parcels of high carbon ferrochrome are selling for 78 cents/lb, delivered major consumer, while in the USA, material is available for 73 cents/lb. In Japan, spot prices for charge chrome are holding firm at 69 cents/lb, cif major Japanese port. The fact that spot prices have stabilised is mainly a reflection of the timing of ferrochrome orders, as opposed to any fundamental change in the underlying strength of global consumption. Buying activity has been quiet over the last month, as most major consumers are covered for the second quarter and negotiations for the third quarter have yet to begin. Of course, the third quarter is seasonally quiet, but there has been no evidence to suggest that the stainless steel mills will undertake more than the normal summer shutdowns, indicating that demand for ferrochrome should remain firm.