NEW YORK High-carbon ferrochrome prices have fallen even further below $1 per pound due to ongoing poor demand and a weakening South African rand.
AMM's US high-carbon ferrochrome price dropped to a range of 94 cents to $1 per pound from 98 cents to $1 previously. It is the lowest price range since the item traded in a range of 94 to 99 cents per pound in December 2012.
Market participants blamed the price drop on continually weak spot demand and currency depreciation in South Africa.
As the rand weakens, chrome always goes down. The currency is killing us, one trader said.
A second trader said: High-carbon ferrochrome is all over the place, but I think were pretty close to hitting the floor. There cant be much more downside. Where prices are right now, theyre not sustainable.