October 07, 2008

US ferrochrome prices keep on flying

As demand for material from stainless steel producers increases and supply decreases the ferrochrome prices in the USA continue to rise.

As the dollar weakens customers in the USA are cutting back on stainless steel and nickel alloy imports, but are booking more domestic product. The weakening of the dollar is also creating more overseas business for the domestic stainless producers. Free market high carbon ferrochrome has also moved up to a range of USD 2.46 to USD 2.50 per pound from USD 2.36 to USD 2.42 per pound at the start of April 2008.

Low carbon 0.05% ferrochrome is now priced at between USD 4.90 and USD 5.00 per pound. The South African power crisis has also contributed to the higher ferrochrome prices. Eskom has requested the ferroalloy and other metal producers to use 90% of their normal electricity consumption. The power crisis is expected to continue for the next 5 years.