High-carbon ferrochrome prices have eased again, with traders
forecasting further price drops in the coming weeks.
ferrochrome tightened to a range of 98 cents to $1 per pound
from 98 cents to $1.02 previously. Prices have trickled down
steadily since trading in a range of $1 to $1.05 per pound in
One trader claimed
that sellers are "lucky" the market hasnt already fallen
further, adding that prices below 90 cents per pound would be a
possibility. "The world is in recession," he said. "Youve
got a slow economy in China, which doesnt want to buy
chrome right now, and weakening currency in South Africa."
A second trader noted
that pricing drops in Europewhere high-carbon ferrochrome
has fallen to a range of 90 to 96 cents per poundwere
likely to have an effect on the U.S. market. "The sentiment is
negative. It hasnt necessarily resulted in pricing drops
yet, but there is a bearish undertone," he said.
A third trader said
that production cuts would be needed before there was any
improvement in free-market pricing. "Demand is not getting
better anytime soon," he said. "The cuts have to come from
suppliers, and I just dont see it happening."