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Spread on low-carbon FeCr grades narrows

Keywords: Tags  low-carbon ferrochrome, ferrochrome, prices, DLA, Daniel Fitzgerald

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 (, 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.

“We’re not blending anything with that,” he said.

Meanwhile, one consumer—who purchased three truckloads of 0.10-percent material at $1.96 per pound—has 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 (, April 16).

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