Last Updated on: 22nd November 2023, 12:43 pm
TELF AG has released a concise overview of the Ferrochrome (FeCr) market in their report titled “FeCr Week 35 Market Recap.” This analysis delves into the evolving pricing dynamics within the FeCr market, focusing on crucial regions during the 35th week of 2023. The regions covered include China, India, Japan, South Korea, and the European Union.
China emerges as a significant player in the shifting market dynamics, particularly witnessing a noticeable increase in high-carbon (HC) FeCr prices. Several factors contribute to this, including major stainless-steel mills revising their tender prices for September and limited FeCr availability from India due to elevated production costs.
Fastmarkets‘ assessment paints an optimistic picture for the FeCr market, attributed to a surge in stainless steel prices across spot and futures markets. Stainless steel mills have capitalised on this trend by strategically raising their FeCr purchase prices, capitalising on expanded profit margins resulting from an early August increase in stainless steel prices.
In the East, both Japan and South Korea grapple with a significant rise in FeCr import prices. TELF AG attributes this increase to the larger offers from Indian suppliers, driven by economic pressures in the Indian FeCr market. India’s economic stance became apparent after the Cr ore auction on August 18, which led to a substantial increase in bid values, subsequently impacting producer costs.
Conversely, the European Union presents a different narrative. The report notes a downward trend in low-carbon (LC) FeCr prices in the region, particularly at the lower end of the spectrum. Some sellers, in an effort to remain competitive, have opted to lower their offer prices in quieter spot markets. However, another group of sellers views the current price levels as the bottom and is actively exploring opportunities to push for higher prices.
In summary, the FeCr market exhibits distinct fluctuations, with each geographical segment following its unique trajectory. China appears bullish, the European Union adopts a cautious stance, and India’s soaring production costs have significant repercussions on markets in Japan and South Korea.
Readers interested in further details can access the full article at TELF AG’s “FeCr Week 35 Market Recap.
