High-carbon ferrochrome prices have weakened slightly, with
market participants forecasting further price drops as traders
fight for remaining third-quarter tenders.
ferrochrome widened to a range of 98 cents to $1.02 per pound
from 99 cents to $1.02 previously.
said there were as many as four separate high-tonnage requests
for high-carbon material currently in the market, but certain
traders are likely to get "very aggressive" in their pursuit of
"It could go as low as
95 cents per pound," one trader said June 21. "Weve
offered material today, and people have been booking at numbers
that are just crazy. I think people are aware that things are
going to get dire and are looking to get rid of material."
"Quite frankly, there
are not many customers out for the third quarter for spot
anymore. Most of the customers have been locked up in long-term
contracts," a second trader said. "I think that business will
go for about 98 cents or just below. Traders will probably go
after these RFQs (requests for quotations) pretty aggressively,
because this kind of tonnage does not come up very often.
"People will just want
to get a large slug of material moved, and this is all there
is," he added. "In the market were in, where its so
damn quiet, if someone can get 500 tons hes not going to
think about a penny or two; hes going to look at the
volume. That business will be very appetizing to a producer
that has material on the ground. I dont expect to get it.
Theres always someone a little more desperate."