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| HOME >> Topics List >> August, 2007 >> 27 (Mon) |
| Price Of High Carbon Fe-Cr Starts To Be Cooled Down |
| = Decreased Stainless Steel Production In China Causes To Fall Fe-Cr Spot Price To 95 US-Cents / Lb. |
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Immediately after summer vacation was over, heated spot price of high carbon ferro-chrome ( charge chrome ) has started to cool down. Since stainless steel mills in China have been decreasing their production, spot cargoes of high carbon ferro-chrome, having become an excess in China and lost the market for sales, are being offered at a discounted price of 95 US-Cents per lb. CIF. Spot price of high carbon ferro-chrome was informed to have been kept on a very high level of 130 - 140 US-Cents per lb. CIF main European ports until July but, in addition to the decreased production of stainless steel in Europe and the USA, the decreasing production in China is now putting a substantial impact on spot price of high carbon ferro-chrome. Because of that high carbon ferro-chrome produced in India so far aimed to sell in China or Europe, this Indian product had the advantage of price but the shrunk markets in these two regions have resulted in a remarkable surplus of spot cargoes. Under the circumstances, an issue of the negotiations on price of South African charge chrome for shipments to Europe and Far East in October - December quarter of 2007 is marked to see and many of the parties concerned have a view that, when a general tendency to roll over the price from that fixed for July - September quarter is agreed upon mutually, this settlement will be lucky for producers. There is a possibility that stainless steel mills in Far Eastern region will rather insist on a reduction of price for charge chrome to be shipped in October - December quarter, because a dissatisfaction with a rise of 18 US-Cents per lb. as settled for July- September quarter has lurked. In particular, major stainless steel companies in Japan and South Korea have held a strong dissatisfaction as an aftereffect of this steep rise . A sharp rise of 18 US-Cents per lb. settled for July - September quarter was based on the soared spot price of high carbon ferro-chrome but even this spot price is now falling. The matter in question of price for South African charge chrome is an attitude for production of stainless steel in October - December quarter to be taken by stainless steel mills in Europe. It is wondered whether, being underpinned by a potentiality of the active demand for stainless steel products from end-users, stainless steel mills will be able to have an opportunity to revive from the decreased production of stainless steel or not. However, spot price of low carbon ferro-chrome for shipments in October - December quarter is supposed to attempt a further rise of 10 - 15 US-Cents per lb. Although actual cargoes of low carbon ferro-chrome have tightened, major producers of low carbon ferro-chrome in Russia so far have no intention to rise price of this ferro-alloy and, therefore, a rise of price for low carbon ferro-chrome has been basically left to an attitude for this matter to be taken by Russian producers. Spot prices of low carbon ferro-chrome for shipments to Europe in July - September quarter are 163 - 164 US-Cents per lb. for carbon 0.1% max. material and 190 US-Cents per lb. for carbon 0.03% max. material respectively, having succeeded in a rise of 20 US-Cents per lb. compared with those for the preceding quarter of April - June. An intention to rise prices of low carbon ferro-chrome to 180 US-Cents per lb. for carbon 0.1% max. material and to 210 - 220 US-Cents per lb. for carbon 0.03% max. material respectively for shipments in October and afterwards has still remained in the market but this action is subject to the movements at Russian side. There are many cases to produce low carbon ferro-chrome from chrome ore imported as raw material and, accordingly, the supply situation and price of chrome ore as raw material will influence sensitively on cost to produce this ferro-alloy. This aspect is a different factor from that for high carbon ferro-chrome ( charge chrome ), which is produced from chrome ore mined at their owned deposits |
| last modified : Thu 30 Aug, 2007 [11:13] |
