Prices for low-carbon ferro-chrome in Europe rose due to shortages in raw materials supply

  • Tuesday, August 24, 2021
  • Source:ferro-alloys.com

  • Keywords:Prices for low-carbon ferro-chrome in Europe rose due to shortages in raw materials supply
[Fellow]Prices for low-carbon ferro-chrome in Europe rose to their highest level since November 2008 because of shortages in raw materials supply.

[Ferro-Alloys.com]

Prices for low-carbon ferro-chrome in Europe rose to their highest level since November 2008 because of shortages in raw materials supply, renewed demand and hikes in offer prices following Russia's new export tax.

Prices for low-carbon 65pc min Cr alloy moved higher to $2.70-2.80/lb ddp Europe, rising by 41pc from $1.82-1.92/lb on 17 August. Prices for low-carbon 60-64.99pc alloy jumped to $2.60-2.70/lb ddp on 19 August, up by 26pc from $2.10-2.25/lb ddp on 17 August.

Much of the increase was triggered by two major factors — the introduction of Russia's new tax on various metals, including ferro-chrome, and disruptions to chrome ore supply from South Africa, the world's largest producer of the alloy.

Producers raised their offer prices to around $2.60/lb this week after Russia's 15pc export tax came into force on 1 August, with one producer offering as high as $3/lb. Traders refused to sell alloy below $2.80/lb because of rising replacement costs, which stand at $2.90/lb delivered Europe.

One stainless steel maker said it is a "nightmare", as they struggled to buy material to meet the surge in demand for steel, with downstream customers looking to call up excess volumes related to long-term contracts.

Furthermore, the recent unrest in South Africa resulted in severe port disruptions in Durban, hampering chrome ore exports. The country accounts for roughly 68pc of global exports, which means that the disruption has had a significant effect on global supply chains.

Europe's sources of low-carbon supply is limited, adding supply pressures in the market. Other than Russia, Europe has access to low-carbon alloy supply at only one major producer in Germany, while other supply is of Turkish or Kazakh origin, leaving buyers unable to pivot to other sources of supply to meet demand.

This has also come in addition to months of low-carbon ferro-chrome supply shortages in Europe as rising container costs restricted the flow of Brazilian and Chinese supply. Brazilian and Chinese producers chose to sell alloy in the domestic market instead of shipping to Europe. Chinese producers have also been unable to produce enough for exports, as environmental checks and electricity curbs have hit domestic output.

Source: Atgusmetal

  • [Editor:kangmingfei]

Tell Us What You Think

please login!   login   register
  • Buy & Sell

 
Please be logged in to comment!