Despite further announcements of electricity-saving shutdowns in South Africa, spot high-carbon ferro-chrome prices have remained fairly steady in recent weeks. Prices are varying regionally depending on demand for stainless and other chrome-bearing alloys. US prices have stabilised after picking up slightly in mid-March on the back of lean stainless steel inventories and rising demand. European prices are also up slightly. Meanwhile, Chinese prices have edged down slightly with many buyers staying on the sidelines. We believe that ferro-chrome priceswill find support from the expected increase in second-quarter benchmark prices. While the contracts have not yet been finalized, MBR maintains the view that contract prices will rise $0.10-0.15/ lb. The expected contract price increase together with tightening supply with a number of smelters off line through May and gradual increases in global demand will bode well for firming spot prices. The price increases, however, will remain moderate with high-carbon ferro-chrome spot market prices unlikely to go much beyond $1.30/lb.
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