NEW YORK High-carbon ferrochrome prices have risen on the back of supply concerns and a reported increase in consumer demand.
The price range for high-carbon ferrochrome has increased to 97 cents to $1.02 per pound from 94 cents to $1 previously.
Market participants told AMM that traders are looking to hold firm on quotes around $1 per pound as supply struggles to keep up with demand.
"Wed previously heard others at 94 cents per pound, but thats been taken off the table," one trader said. "A lot of the larger guys are saying were not going to offer at these lower levels, were going to go for $1 or nothing."
"High-carbon chrome is a real problemI dont know where were going to get it," a second trader said. "The rumor is that (one major supplier) doesnt have any material, and the DLA material was gobbled up."
A source at a major supplier said his company is focusing on fulfilling its contract business rather than participating in the spot market. "We can only support our contracts," he said. "Ive turned down several businesses over the past week because I couldnt support them. Customers are taking larger quantities, and spot demand has picked up. There is limited material now in this country and not many people can offer anything."
Fort Belvoir, Va.-based DLA Strategic Materials offered more than 1,508 short tons of high-carbon ferrochrome for August (amm.com, Aug. 20).
Traders attributed the increased demand to renewed optimism from the stainless sector following a boost in base prices and raw material surcharges (amm.com, Aug. 21).
"There is a noticeable difference between three weeks ago and today," a third trader said.