Ferrochrome--Fundamentals weaken for ferrochrome in Q3

摘要

Demand for ferrochrome has softened, and spot prices have continued to fall. This reflects the fact that consumers are covered for their needs via contract material, leaving trading activity at a low ebb. European spot prices have slid further, with high-carbon (HC) spot prices down 30 cents/lb to average 220 cents/lb DDP in July. Indian-origin HC quotes (with a higher silicon content) fell to as low as 175 cents/lb, while Kazak sourced material fell to 245 cents/lb. Prices declined due to European stainless mills being covered for Q3, plentiful availability of Indian HC, and traders trying to close long positions over the quiet summer period as financing costs have risen. 0.1 percent low-carbon (LC) spot quotes fell by 20 cents/lb to average 475 cents/lb DDP in July, with Russian-origin 0.1 percent prices down to 495 cents/lb, while Chinese origin 0.1 percent prices fell to 445 cents/lb. This was due to increased Chinese exports of LC, up 250 percent y-t-d in May, with Chinese exports to the Netherlands totalling around 8,500t from January-May in 2008. Much of this material is left unsold, due to weaker specialty mill demand and to the fact that some mills are unable to use the lower-grade Chinese 0.1 percent stock unless they can blend it with higher-grade 0.1 percent material.