No direction forward, but better than last month

摘要

Most buyers and sellers seem to be awaiting the outcome of the fourth-quarter contract negotiations for South African charge chrome before returning to the spot market. The contract price could go up or down, but the quarter-on-quarter change, if any, is likely to be small. Much will depend on the volumes that the stainless steel mills plan to produce. If the mills plan a significant increase in operating rates, then higher prices will be needed to get more ferrochrome out of the smelters. If, however, the mills decide to maintain operations at reduced levels, then the rollover is the most likely. A decline in contract prices is the least likely outcome, but is not altogether out of the question. Since the rand has appreciated against the dollar by around 7% since late May, South African producers are especially eager to see higher prices, but they may not get their wish.