NEW YORK High-carbon ferrochrome prices have weakened slightly, with market participants forecasting further price drops as traders fight for remaining third-quarter tenders.
High-carbon ferrochrome widened to a range of 98 cents to $1.02 per pound from 99 cents to $1.02 previously.
Market participants 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 the business.
"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."