Ferrochrome/Regional prices continue to surge, with scope for further hikes

摘要

Prices have rallied in all regional markets on the back of tight fundamentals. Supply remains constrained, while consumers attempt to secure as much material over concerns of future shortages. European spot prices continue to rally. High-carbon (HC) spot prices increased from an average of 230 cents/lb in February, to 250 cents/lb so far in March, with current prices at around 265 cents/lb. Indeed, some HC material has been sold at slightly over 300 cents/lb, but this does not represent the majority of price levels achieved. Meanwhile, European medium-carbon (MC) prices surged up by 60 cents/lb to average 400 cents/lb in March. Supply disruptions to MC 1-2 percent C have forced consumers to substitute to MC (0.1 percent), while demand has been solid from special steel and foundry applications. The US market has also experienced price hikes, due to both a limited availability of material and recovering customer purchasing, with US HC spot prices up 16 cents/lb to average 212 cents/1b in March. US MC (0.1 percent) prices surged up 50 cents/lb to 420 cents/lb, as in Europe consumers have had to substitute MC 1-2 percent C with 0.1 percent C.