The second quarter of the year has typically become the strongest point of the year for ferrochrome smelters, with contract prices being increased during 02 in each of the past three years. The seasonal market dynamics that have been apparent since 2008 - cuts in South African ferrochrome production due to industrial power usage restrictions in the country during the winter months, as well as restocking of stainless steel in Europe during the first quarter, thereby boosting ferrochrome demand - should see second-quarter contract prices rolled over at least, although the market sentiment would appear to support a small increase. On the flipside of these seasonal dynamics, however, prices beyond the first half of this year are likely to come under more pressure, particularly given the continued negative outlook for stainless steel in Europe.
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