[ferro-alloys,com] Over the past week, prices for high-carbon ferrochrome continued to rise in the US and European Union. Several sales were noted across the two regions. There were plenty of expectations that demand should further improve; however, recent movement is much more attributed to supply-side dynamics. In the EU, numbers rose to 95 cents to 97 cents per lb, ex warehouse, and this range is likely to inch higher in the near-term. Supply to third-party suppliers largely dried up as Tikhvin announced in mid-August that it was reconsidering its supply agreements with traders. In addition, while volatility in the European market was highest earlier in 2013, many mills found themselves short on material coming off of summer holidays when inventories were depleted to yearly lows; this has led to better than expected demand, particularly in the spot market as buyers needed to take on shipments for immediate consumption. Downside risk has decreased to the lowest level seen in months, and at least, there is a sign that optimism has returned to the market, albeit still plagued with a certain level of caution.

 

The US market has seen somewhat similar dynamics, and demand is in better shape than previously expected. With pipe mill and other expansions slated for the US, demand is believed to be on the rise in a market where supply was already considered tight. High-carbon ferrochrome imports in July were nearly identical to June’s figures at just over 37,000 mt.

 

The US low-carbon market has been relatively flat, with only a few spot sales being reported over the past week. Demand on contract, however, has been steady across several suppliers. One seller settled a 200 ton deal at 198 cents per lb, the low of the current range. Another customer took on traded material at the same price. The same seller also recorded a sale of low-carbon ferrochrome, 0.05 materials, at 215 cents per lb. There are no significant inquiries currently in the market