Good news for those on the hunt for cheap ferrochrome: Prices are steadily falling. But since this fall is due to a lack of heavy demand, the prices should increase after stainless steel mills ramp up production. For now, however, summer slowdownsÃ‚Â have impacted prices. Also leading to these lows is “the continued collapse in sales to makers of residential construction and automotive end products,” Purchasing shares. “There also are reports of cheaper Indian ferrochrome material available to domestic buyers, partially offsetting tighter supply from traditional South African sources.”
According to Purchasing, “High-carbon ferrochrome has slipped to an average $2.38/lb this week from $2.43 previously; low-carbon 0.05%-grade material has dipped to $5.46/lb from $5.53; low-carbon 0.10% ferrochrome has fallen to $5.03/lb from $5.13; and 0.15% material has eased to $5/lb from $5.11.”
On the other hand, if we see further production in the stainless market after the summer slump, there could be new highs for ferrochrome. China’s stainless demand is a key factor to the ferrochrome price rises or falls, and their demand should increase next quarter. A major price increase towards the end of the year is possible, even expected.