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Negotiations To Rise Price Of FeCr For Shipments In Q2 / 10 Are Unexpectedly Taking Time
= Bases Are Spot Price Prevailing In China And Anxiety For View On Long Run
The negotiations with stainless steel companies in Europe on a rise of price for South African charge chrome to be shipped in April - June quarter of 2010 are still taking time. Following the tightened supplies of nickel and stainless steel scrap, the negotiations to rise the benchmark price of South African charge chrome (high carbon ferro-chrome) once had an atmosphere to be settled smoothly but a rise of 30 US-Cents per lb. of Cr as asked by producers' side has been still opposed by stainless steel mills.

In view of an unexpected opposition to a rise of price for charge chrome by consumers, it has been voiced from producers' side that even a rise of 25 US-Cents per lb. of Cr would be allowable. In comparison with a bullish attitude for sales of nickel and stainless steel scrap as changed recently, the situation of ferro-chrome is supposed to be different. On the other hand, some of ferro-chrome producers have questioned the reason, why consumers have taken a severe attitude toward price of ferro-chrome, although consumers have admitted a rise of prices for nickel and stainless steel scrap.

According to the opinions from consumers, its keywords are thought to have been consolidated to the following points ; (1) Stainless steel mills in China imported spot cargoes of high carbon ferro-chrome at 100 - 105 US-Cents per lb. of Cr CIF, which is lower than those prevailing in Europe and the USA. In addition, China imports chrome ore at discounted prices and is able to produce ferro-chrome by themselves from imported ore., and (2) The production of stainless steel in Europe and the USA once delayed to revive but has now recovered to a substantial extent. However, its leadtime, which has been understood as a barometer for stainless steel products already ordered for future shipments, is unable to see a considerable change and, therefore, a forecast of orders for stainless steel products to be shipped in July - September quarter has no response to guarantee.

Spot price of high carbon ferro-chrome in Europe has risen to a level of 120 - 122 US-Cents per lb. of Cr on DDP base, having exceeded the formally fixed benchmark price (101 US-Cents) of South African charge chrome for shipments in January - March quarter of 2010. Since the US consumers have no long-term contract on import of ferro-chrome, spot price of high carbon ferro-chrome in the USA has risen to 130 US-Cents per lb. of Cr at present, having indicated a firm tone of the price.

The strike at Vale-Inco continued still for a long period in Canada and a reduction in generation of stainless steel scrap are the anxious factors on supplies' side. On the other hand, as for ferro-chrome, there are problems in South Africa, which are a raise of electricity fees, a crisis in supply of electric power in relation to the World Soccer Games to be held in June and the strengthened exchange rate of South African Rand against US-Dollar. The negotiations on a rise of price for South African charge chrome are anticipated to reach a peak on the end of this week. While it will be certain to be able to rise price of charge chrome for April - June quarter, a rise of 30 US-Cents per lb. of Cr as requested by ferro-chrome producers is being shaken at present.
last modified : Tue 30 Mar, 2010 [09:52]
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