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|Price Of Low Carbon FeCr Is Being Pulled Down By Increased Exports Of Chinese Product|
|= China Exported 75,000 Tons In Jan. - Oct. 2008|
The sales of Chinese low carbon ferro-chrome in overseas countries are now pulling down price of low carbon ferro-chrome in the world market to an unnecessary extent. The current market price of Chinese low carbon ferro-chrome prevailing in Europe is 230 US-Cents per lb. of Cr for carbon 0.1% max. material. On the other hand, the price of regular low carbon ferro-chrome with carbon 0.1% max. is in the range of 250 - 270 per lb. of Cr at present.|
According to the customs-statistics released in China, this country exported 74,861 tons of low carbon ferro-chrome in January - October of 2008, which had a remarkable increase of 3.6 times compared with that (20,759 tons) in the same period of 2007 and included 21,265 tons shipped from China to Europe (Rotterdam). For a reference, China exported only 102 tons of low carbon ferro-chrome for Europe in January - October of 2007.
Also, China exported 9,325 tons of low carbon ferro-chrome for Europe in July - October of 2008, having shared nearly half of the total quantity exported from China to Europe in January - October of 2008. The cargoes of low carbon ferro-chrome shipped from China to Europe have been mainly discharged at Rotterdam for sales ex. stocks at warehouses and the excessive exports of Chinese low carbon ferro-chrome for Europe as mentioned above have caused to collapse the market price of low carbon ferro-chrome.
The US market price of low carbon ferro-chrome is higher than that in Europe and the stocks of low carbon ferro-chrome are attempted to be reexported from Europe to the USA but the sales of low carbon ferro-chrome ex. stocks have been normalized in the USA. Therefore, in view of a period of ocean transportation (from Rotterdam to US ports) and risks of sales ex. stocks, an effect of the resales will be doubtful.
The positive exports of low carbon ferro-chrome from China have closely connected with the steeply risen price of low carbon ferro-chrome (with carbon 0.1% max.) in the international market. The price (per lb. of Cr CIF Japan) of low carbon ferro-chrome (with carbon 0.1% max.) for shipments to Japan in the three quarters of 2008 had risen considerably as follows ; <> January - March quarter : 285 - 390 US-Cents, <> April - June quarter : 465 - 480 US-Cents and <> July - September quarter : 510 - 520 US-Cents. Being stimulated by these very high prices of low carbon ferro-chrome, many of Chinese producers have at once entered into production of low carbon ferro-chrome. An aftereffect of this aspect in China is coming up to the surface with a sharp fall of price for low carbon ferro-chrome.
The reason, why the circumstances for China have worsened, is due to the fact that stainless steel mills in Europe have suspended to purchase ferro-chrome as they are reducing stainless steel production The stocks of Chinese low carbon ferro-chrome in Europe have become an excess and the price of Chinese product has fallen from 400 US-Cents per lb. of Cr as prevailed at the beginning of sales (April to May of 2008) to 230 US-Cents at present.
The quantities of low carbon ferro-chrome exported from China to main overseas countries, excluding European countries, in January - October of 2008 were <> for Japan : 21,544 tons (compared with 12,975 tons in the same period of 2007), <> for South Korea : 11,444 tons (6,307 tons in 2007) and <> for Taiwan : 4,307 tons (666 tons in 2007). These considerable increases of the imports from China by Asian countries are due to the fact that these three countries had been importing IC-3 grade ferro-chrome from South Africa but, since an explosive accident of electric furnace occurred in February of 2008 in South Africa, the operation was stopped for several months and the supply of IC-3 grade ferro-chrome from South Africa has had problems. Consequently, these Asian countries have imported low carbon ferro-chrome produced in China as a substitutive material for South African IC-3 grade ferro-chrome. This situation has been also applied to part of European stainless steel mills.
|last modified : Tue 16 Dec, 2008 [10:47]|