The second-quarter settlement came out at $1.54 per lb, down
from $1.65 per lb in the first quarter. In the weeks leading up
to ferro-chrome benchmark negotiations and announcements
– often as early as half way through the quarter
– there is always a period of forecasting among market
participants, analysts and price reporting agencies. This round
was no different in that respect. Metal Bulletin’s
European ferro-chrome benchmark indicator had predicted a
reduction of 17 cents per lb in early March, roughly in line
with estimates by Metal Bulletin Research, and most market
participants polled by Metal Bulletin estimated a 15-20 cent
drop. But what was different this time was that the general
consensus – based on market sentiment – was
further out than normal. With hindsight, this is no surprise
based on the way the first-quarter settlement shocked the
market when it was announced in...
