NEW YORK High-carbon ferrochrome prices have risen for
the second week in a row as producers push to lift prices off
historically low levels.
Everybody has now decided from a producer standpoint that
we have to try to raise these prices. The market found a bottom
last week sometime when the Chinese market started to turn
around and chrome ore picked up, one trader
Market sources said earlier this month that sentiment had
started to improve amid a sense that the market had bottomed
amm.com, Dec. 14
). That positive momentum has
continued as December progresses, sources said.
Prices are now in a range of 99 cents to $1.02 per pound,
narrowing from 96 cents to $1.02 per pound previously, with
intertrade business for truckload quantities reported across
the range this past week.
Tags dropped as low as 94 cents per pound in late November, a
34-month low, as consumption was poor and the market in
amm.com, Nov. 30
But recent shutdowns by South African ferrochrome producers and
a sense that domestic stocks might be tighter than expected
have buoyed sentiment.
Imports of the material over the first 10 months of the year
have fallen 9.7 percent to 382,217 tonnes compared with the
same period in 2011, according to the latest figures from U.S.
Sentiment is a little bit better than before, and there
doesnt appear that theres as much inventory out
there as you might expect, the trader said.
Market sources also cited the completion of most long-term
business for 2013, which was again largely done using discounts
off published prices, as a reason for the spot price
Now that the long-terms are done, the producers are
trying to get the prices up, a second trader said.