TELF AG has released a concise overview of the Ferrochrome (FeCr) market in a report titled “FeCr Week 35 Market Recap.” This report delves into the evolving pricing dynamics within the FeCr market across key regions during the 35th week of 2023. The analysis encompasses regions such as China, India, Japan, South Korea, and the European Union.
TELF AG notes that China has taken the lead in shaping market dynamics, witnessing a notable increase in high-carbon (HC) FeCr prices. This shift has been influenced by various factors, including major stainless-steel mills revising their tender prices for September and a constrained supply of FeCr from India due to heightened production costs.
Fastmarkets has reported an optimistic outlook for the FeCr market, attributing this positive sentiment to the upswing in stainless steel prices on both spot and futures platforms. Stainless steel mills, recognising this trend, have strategically raised their FeCr purchasing prices, capitalising on the wider profit margins resulting from the early August increase in stainless steel prices.
In the eastern markets, both Japan and South Korea are grappling with a significant uptick in FeCr import prices. TELF AG attributes this increase to more substantial offers from Indian suppliers, influenced by economic pressures within India’s FeCr market. The rigidity of India’s economic stance became evident following the Cr ore auction on August 18, which led to a substantial rise in bid values, subsequently impacting producer costs.
In contrast, the European Union presents a different narrative. The report highlights a downward trend in low-carbon (LC) FeCr prices within the region, particularly at the lower end of the spectrum. Some sellers, in a bid to remain competitive, have opted to reduce their offer prices in quieter spot markets. However, another segment of sellers views the current price levels as the floor and is actively exploring opportunities to push for higher prices.
In summary, the FeCr market is marked by distinct fluctuations, with each geographical segment reflecting its unique market trajectory. China exhibits a bullish sentiment, while the European Union takes a more reserved stance. Meanwhile, India’s rising production costs have significant implications for markets in Japan and South Korea.
Readers can access the full article on TELF AG’s FeCr Week 35 Market Recap report.