Prices for high-carbon ferrochrome are up in Europe, and while consumers are griping about the pushback from suppliers on discounts, they have been willing to accept higher figures. One supplier noted that he was setting a new minimum price for upcoming bids, higher than the current CRU Ryan’s Notes’ range. Meanwhile, in addition to what has been deemed as a more disciplined supply of the material in Europe, buyers are also wondering what effects will be seen as a result of the electricity and buyback issues in South Africa. The most recent buyback program ended on December 6, but there is speculation that an extended program could be reinitiated in the first quarter of 2014. Prices held level, week-on-week, after an earlier upward move this month, holding at 97-101? per lb, ex-warehouse Europe. Some ferrochrome producers reportedly participated in the brief Eskom buyback program, and estimates suggest that up to 45,000 mt of material was removed from the supply chain as a result. In the coming two weeks, market players are expecting the first quarter charge chrome benchmark to be announced. Some felt that the recent turbulence could lead to a higher figure in the first quarter of 2014. Meanwhile, free-market charge chrome is still demanding a discount of approximately 15-18%, while the range holds level at 92-95? per lb, ex-warehouse Rotterdam. The 0.10 low-carbon market, while seeing smaller volumes in current deals, has been slightly more active in terms of the number of sales. One user reported that prices have remained consistent in the current CRU Ryan’s Notes mid-range of 196-201? per lb, ex-warehouse. Some felt that prices would climb higher before year end as there are still several outstanding orders.

 

In the US, the high-carbon ferrochrome market did not see as much activity compared to what had been reported earlier in the month, but one supplier reported several inquiries for higher grade material as compared to standard grade. Prices for standard grade high-carbon ferrochrome are holding firm at 102-106? per lb, ex-warehouse, for multi-truckload volumes. It is likely, however, that higher prices seen in Europe could add lift to the US market. Meanwhile, there were reports that supply of low-carbon, particularly 0.05C and 0.15C, was still tight. On December 17, the DLA will undergo a BOA sale for ferrochrome. Some 0.10 low-carbon ferrochrome is expected to be included again in the offering.