NEW YORK High-carbon ferrochrome prices have increased as market participants reported higher spot sales this past week.
Prices climbed to $1 to $1.05 per pound from 99 cents to $1.03 per pound previously, with transactions for truckload quantities reported at the top end of the range.
One seller said that despite recent offering prices near the top of the range, buyers "jumped" at the chance to purchase material.
He attributed the move upward to squeezed margins at producers rather than markedly improved demand.
"Prices had to move up because producers were losing money," the seller said.
Market sources said in early October that replacement costs for the material were moving higher (amm.com, Oct. 4).
One buyer said he was happy to have bought material at the higher end of AMMs range as he felt that prices for most ferroalloys had bottomed out.
However, a second seller said his business was still tepid, which might prevent prices from moving much higher in the short term.
"On high-carbon ferrochrome, its mostly small stuff (at the moment)," he said.
Low-carbon ferrochrome (0.10-percent material) also recently ticked up due to fewer sales by DLA Strategic Materials (amm.com, Oct. 25).