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Ferrochrome prices climb on supply worries, demand

Keywords: Tags  high-carbon ferrochrome, ferrochrome, ferrochrome prices, ferrochrome demand, ferrochrome supply, DLA, Daniel Fitzgerald

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.

"We’d previously heard others at 94 cents per pound, but that’s been taken off the table," one trader said. "A lot of the larger guys are saying ‘we’re not going to offer at these lower levels, we’re going to go for $1 or nothing.’"

"High-carbon chrome is a real problem—I don’t know where we’re going to get it," a second trader said. "The rumor is that (one major supplier) doesn’t 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. "I’ve turned down several businesses over the past week because I couldn’t 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 (, Aug. 20).

Traders attributed the increased demand to renewed optimism from the stainless sector following a boost in base prices and raw material surcharges (, Aug. 21).

"There is a noticeable difference between three weeks ago and today," a third trader said.

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