July 25, 2008

Charge and HC ferrochrome contract price spread widens

The majority of second quarter charge chrome and high carbon ferrochrome contracts have been settled, with the prices achieved showing a strong premium for the high carbon material.

The quotation for lumpy charge chrome and high carbon ferrochrome basis 6% to 8% carbon max rose to USD 1.92 to USD 2.10 per pound as compared with USD 1.20 to USD 1.22 per pound in the first quarter.

This is the first time that the spread in contract prices has exceeded 10 cents.

Second quarter prices rose from the first quarter on tight supply, caused by booming demand from the stainless steel sector and the power crisis in South Africa. Depreciation of the US dollar against the Rand and high prices for coking coal were also a factor in the higher pricing.

(Sourced from ferro-alloy.com)