Ferrochrome tags dip below $1/lb. with no end in sight

Dec 23, 2008 | 09:37 AM | Mick Bowen

A dearth of activity on the ferrochrome spot market and the continued availability of lower-quality material from India have dragged U.S. prices to below $1 a pound, and traders still see no end in sight.

"There's so little activity in the market that the sale of a couple of hundred tons can overly impact a market of millions of tons," a trader told AMM, referring to Indian material, which contains up to 3-percent silicon, that is going for 75 to 80 cents a pound, down from $1.15 to $1.30 a pound late last month.

Traders said that high-carbon ferrochrome is between 90 cents and $1 a pound, although one trader said the best high-carbon material fetches $1.15 to $1.20 a pound. AMM reported in November spot prices for high-grade ferrochrome of $1.40 to $1.55 a pound, down from $1.75 to $1.90 in late October and $2.10 to $2.16 in early September (AMM, Nov. 24).....