NEW YORK Low-carbon ferrochrome prices could soften in the near term as European traders and producers increasingly look to the U.S. market due to weak prices and demand levels at home.
"Youve got European traders (who) have material and are putting it into the United States," one trader said.
Turkish producers are also said to be stepping up their exports to the U.S. market.
"The European price is low enough to bring it in from Europe. Turkish material is flowing over here," one market source said.
Domestic companies are increasingly buying from producers there, sources said.
"They have about seven companies buying their chrome," the first trader said.
While a second trader confirmed that Turkey has become a bigger supplier to the U.S. low-carbon ferrochrome market, he said that this wouldnt cause prices to fall in the near term.
"Weve seen an influx of Turkish material all year, and thats going to continue for quite some time. Theyve picked up some business with U.S. trading groups. My opinion is the prices are pretty flat," he said.
Prices for 0.10-percent ferrochrome in the domestic market are between $2.08 and $2.10 per pound, while 0.05-percent is between $2.25 and $2.28 per pound.
Meanwhile, prices in Europe for 0.10-percent material are between $1.96 and $2 per pound, while 0.06-percent material is trading between $2.05 and $2.10 per pound, according to AMM sister publication Metal Bulletin.