Ferrochrome--Spot and contract prices fall in all regions

摘要

Weak demand, minimal buying, and forced selling have culminated in prices continuing to fall. While economic prospects set a downbeat broader backdrop, ferrochrome's own fundamentals have weakened with stagnation in stainless production in China and elsewhere. European spot prices have fallen. There is almost no buying, as many expect prices to continue to fall, while at the same time some traders are being forced to sell as finance lines and credit insurance conditions are tightened. Consequently, Indian-sourced HC spot prices fell from 170 cents/lb to 125-140 cents/1b DDP in October, and higher grade HC is trading down from 220 cents/lb to 170-210 cents/lb DDP. Our average assessment for HC has fallen 30 cents/lb to 160 cents/lb in October. LC 0.1 percent C spot quotes slipped due to deteriorating demand from foundries, with Chinese-origin prices at 390 cents/lb DDP and Russian-origin at 4250/lb DDP. Although there has been almost no trade in LC 0.05 percent C material in recent months, spot prices have fallen to around 435 cents/lb DDP, so that the premium over 0.1 percent material has been brought back to normal. We expect further sharp falls in European spot prices, as there is plenty of material available, and demand looks bleak for some months yet.