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...