NEW YORK High-carbon ferrochrome prices were steady April 18, but some traders say the market has the potential to be undercut by lower offers for material from India.
High-carbon ferrochrome was unchanged at $1 to $1.03 per pound, although several traders told AMM that material sourced from India was being offered at 98 cents per pound.
"There are one or two people sitting on Indian-grade material and theyre looking to move it, but 98 cents is not reflective of the market," one trader said. "Its frustrating to be dictated by those kinds of offers."
No spot transactions were confirmed below $1 per pound.
Traders told AMM that spot business hadnt improved in the ferrochrome market, but that demand hadnt deteriorated noticeably either.
"It hasnt gotten any worse and it hasnt gotten any better," a second trader said. "One day youll have five calls, the next youll have none."
A third trader said that his company had fielded a "few small inquiries" but that conditions were akin to "a feeding frenzy" when consumers emerged for spot purchases.
"Ferrochrome is not falling, its just stagnant," the first trader said. "Theres no drop in demand to result in a fall in pricing, and no increase in supply. The DLA (Strategic Materials) is the only prompt material in this market."
Glencore International Plc and CCMA LLC paid a total of $1.25 million for a combined 1,000 short tons of high-carbon ferrochrome offered by the DLA in March (amm.com, April 8). The DLA offered another 1,000 tons of high-carbon ferrochrome April 16 (amm.com, April 16).