Ferrochrome prices down on slow demand

Indian supplies keep market loose

by Tom Stundza -- Purchasing, 7/16/2008 10:57:00 AM

Ferrochrome prices have edged lower as demand from stainless steel mills has softened partly because of the traditional summer production slowdown and partly because of the continued collapse in sales to makers of residential construction and automotive end products. There also are reports of cheaper Indian ferrochrome material available to domestic buyers, partially offsetting tighter supply from traditional South African sources.

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.

Trade sources tell subscription news service Steel Business Briefing that prices are being underpinned by a lack of U.S. Defense Logistics Agency material available for sale and the ongoing supply crimp in South Africa resulting from a power shortage. Eskom Holdings, which controls South Africa's power grid, has asked metals producers to use no more than 90% of the electricity they normally would consume.