| The TEX Report Topics < Ferro Alloys > | |
| HOME >> Topics List >> April, 2009 >> 06 (Mon) |
| Low Carbon FeCr Price For Shipments In Q2 / 09 Is Inevitable To Fall Further |
| = Price Of Carbon 0.1 % Material Is Supposed To Come Down To Level Of 185 - 190 US-Cents Per Lb. / Cr CIF |
|
The price of low carbon ferro-chrome to be contracted with regular consumers in Japan for shipments in the second quarter (April - June) of 2009 is anticipated to fall further. As of the end of last week, leading produces in Russia and Kazakhstan were still not offering their prices of low carbon ferro-chrome for April - June quarter but are supposed to start negotiations on this subject from around this week. In view of market prices which are currently prevailing in Europe and China, a price trend will be inevitable to fall further. The matter in question is the level of price for low carbon ferro-chrome and those settled for January - March quarter were in the wide range of 195 - 210 US-Cents per lb. of Cr CIF for carbon 0.1% max. material but its price level for April - June quarter has a big probability to be in an offensive and defensive battle of 185 - 190 US-Cents per lb. of Cr CIF. It was informed that spot price of low carbon ferro-chrome in Europe has already fallen to a level 178 US-Cents per lb. of Cr for carbon 0.1% material. Having taken a chance on the steeply risen prices of low carbon ferro-chrome in 2008, China increased their production of low carbon ferro-chrome to a considerable extent but its aftereffect has been left in Europe and Japan with excessive stocks of low carbon ferro-chrome. According to a report from one of forwarding agents, approximately 2,000 tons of Chinese low carbon ferro-chrome have been still stocked in Hokkaido of Japan. The demand for low carbon ferro-chrome has been based mainly on special steel products and, according to a forecast compiled and released by the Ministry of Economy, Trade and Industry, the quantities of special steel products to be produced in Japan for each quarter of the first half (January - June) of 2009 will be <> for January - March quarter : to estimate 2,657,000 tons and <> for April- June quarter : to anticipate 2,815,000 tons. For a reference, the special steel industry of Japan actually produced in the first half of 2008 special steel products as follows ; <> for January - March quarter : 6,936,000 tons and <> for April - June quarter : 6,806,000 tons. The production levels in the first half of 2009 compared with those in the same period of 2008 are <> for January - March quarter : 40.6% and <> for April - June quarter : 41.4%, indicating the extremely lowered operation levels. The point, which low carbon ferro-chrome has differed from high carbon ferro-chrome (charge chrome), is steel companies as main consumers of low carbon material and the total quantity of low carbon ferro-chrome stocked at steel mills in Japan as of the 31st January of 2009 came to 8,792 tons, which had not so increased in comparison with that (7,295 tons) at the end of the same month of 2008. Reflecting the decreased production of special steels, the quantity of low carbon ferro-chrome consumed in Japan for January of 2009 had fallen to 2,336 tons and, consequently, its stock rate had enlarged to 3.65 months but this actual quantity stocked in Japan is not so heavy. Therefore, new contract to be concluded on high carbon ferro-chrome for shipments to Japan in January - March quarter of 2009 was nearly nothing but some lots of low carbon ferro-chrome have been newly purchased. In the same case as that for January - March quarter, small lots of low carbon ferro-chrome are anticipated to be purchased by Japan for shipments in April - June quarter. |
| last modified : Thu 09 Apr, 2009 [10:32] |
