Ferrochrome prices finally begin to follow chrome ore prices up

In recent publications Metal Bulletin Research has highlighted the growing tension between rising raw material prices and flat-to-falling finished product prices in the global chrome industry. In particular we talk of the recent rise in chrome ore prices and disappointing price movement in spot market ferrochrome prices.

This apparent contradiction had led to growing concerns among China’s ferrochrome smelters, which have been facing squeezed margins. By our understanding, some of China’s ferrochrome smelters have been contemplating closure or a switch in product mix (i.e. using their furnaces to produce other ferroalloys) given their predicament.

They will have been pleased then that recent weeks have seen this apparently unsustainable trend come to a halt, or at least a slowdown. Chrome ore prices have continued to rise but finally so too have ferrochrome prices.

Nevertheless, China’s...

Published

Robert Cartman

September 28, 2016

00:00 GMT