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|Japan's Purchase Price of HC FeCr Down by US Cents 4 from Prior Period|
|= US Cents 112 per lb due to weak demand throughout world including Japan =|
Japanese stainless steel mills continued negotiation with several foreign ferro-chrome producers to fix the purchase price of high-carbon ferro-chrome for the period from October to December in 2015, and recently came to an agreement on the price to be down by US Cents 4 from the prior period.|
The price is US Cents 112 per lb by estimate, and this price cut is for the first time in 3 periods.
This time, the reason why the price was lowered from the prior period is because the overall demand and supply balance is in a state of weak demand.
Specifically, (1) From the viewpoint of supply, several producers in South Africa as a main production area have suspended operation, and therefore the image of the production volume being down from the year-earlier period is strong, (2) On the other hand, some of the producers increase the rate of operation in this period when the electricity rate returned to the normal rate as compared with the prior period when the electricity rate was relatively high for a winter season, (3) From the viewpoint of demand, the consumption of ferro-chrome in the Asian region including Japan is weak due to slowdown in the Chinese economy and (4) Besides, the world consumption of ferro-chrome is also forecast to be down from the year-earlier period.
From these points of view, the demand and supply balance is thought to be in a state of oversupply, and therefore the price of high-carbon ferro-chrome for this period was settled at the price being down from the prior period.
The trends in the prices since the year 2014 is <> During January to March in 2014: Cents 126 (up by Cents 5.5 from the prior period, <> During April to June: Cents 130 (up by Cents 4 ditto), <> During July to September: Cents 127 (down by 3 ditto), <> During October to December: Cents 123 (down by Cents 4 ditto), <> During January to March in 2015: Cents 116 (down by Cents 7 ditto), <> April to June: Cents 116 (unchanged ditto), <> During July to September: Cents 116 (unchanged ditto) and <> During October to December: Cents 112 (down by Cents 4 ditto).
|last modified : Fri 30 Oct, 2015 [09:34]|