NEW YORK Prices for 0.10-percent-carbon ferrochrome have dropped to a price range comparable to that of 0.15-percent-carbon ferrochrome, with some market participants again citing the impact of DLA Strategic Materials sales.
Prices for 0.10-percent ferrochrome dropped to a range of $1.96 to $2.02 per pound April 18 from a range of $2.02 to $2.07 previously, while 0.15-percent material held in a range of $1.95 to $2.01 per pound.
Market participants told AMM that sales of 0.11-percent-carbon and 0.13-percent-carbon material from the DLA has muddled the price points for 0.10-percent and 0.15-percent material somewhat, with some traders offering 0.15-percent material as 0.10-percent-carbon material.
You have a lot of 0.15-percent product being delivered as 0.10-percent, and that puts pressure on the 0.10-percent price, said one trader, who added that the DLA has really put a wrinkle on that market for so long.
Sources previously told AMM that 0.13-percent-carbon ferrochrome sold by the DLA is frequently being blended and resold as 0.10-percent material (amm.com, March 29
However, a second trader who sold 200 tons of 0.10-percent-carbon material at $1.97 per pound was adamant that the material was not sourced from the DLA.
Were not blending anything with that, he said.
Meanwhile, one consumerwho purchased three truckloads of 0.10-percent material at $1.96 per poundhas also noticed the increasing parity between 0.10-percent and 0.15-percent material.
We noticed after the first few bids came in that people quoting 0.10-percent were right on top of the 0.15-percent price. It seems the pricing for those products has narrowed, he said.
Fort Belvoir, Va.-based DLA offered 840,000 pounds of 0.13-percent-carbon ferrochrome and 840,000 pounds of 0.15-percent material on April 16, having failed to find a buyer for the material in March (amm.com, April 16