NEW YORK DLA Strategic
Materials sold 1,000 tons of high-carbon ferrochrome
(65.03-percent chrome contained) from its depot in Point
Pleasant, W.Va., last month, its first sale of the material
since May last year.
The Fort Belvoir, Va.-based
Defense Department agency also sold 711 tons of low-carbon
ferrochrome during the month.
The DLA received a total of
$3.04 million for the ferrochrome sales to Zug,
Switzerland-based GfE-MIR Holdings AG, parent of White Plains,
N.Y.-based ferroalloys trader Varomet Corp.; Stamford,
Conn.-based Glencore Ltd; and Cincinnati-based Hickman,
Williams & Co.
The agency also sold 190,000
pounds of tungsten ores and concentrates for $2.7 million last
month to an undisclosed buyer.
The DLA resumed offering
high-carbon ferrochrome in October after a 16-month absence
from the market. Market sources expected the sale to have
little impact on high-carbon ferrochrome prices in general, as
the material sold has a chrome-to-carbon ratio of roughly 10 to
1 (65.03-percent chrome, 5.90-percent carbon), a composition
that usually fetches a premium to standard high-carbon
"Its a very special grade
of material," one trader said.
Market sources estimated the
selling price for the high-carbon ferrochrome at about $1 per
An agency spokesman declined to
comment on the price level for the sale but said that "if we
dont think we get what we think is the equivalent of
value, we dont award." He added that the sale was "fairly
Domestic high-carbon ferrochrome
prices currently are at a three-year low between 93 and 99
cents per pound.