Q3 ferro-chrome benchmark drop to put pressure on EU stainless base prices

Falling ferro-chrome prices and nickel falling below $9,000 per tonne are expected to “meaningfully weigh on [EU] stainless transaction prices in the coming months as alloys surcharges reset”.

“We expect customers to delay purchases and de-stock inventories, which has in the past weighed on industry pricing discipline,” investment bank Jefferies said in a research note on Wednesday June 14.
The bank has reduced its estimate for the third quarter European ferro-chrome benchmark to $1.20 per lb, down from an earlier estimate of $1.40 per lb.
Jefferies expects the European fourth quarter benchmark to fall further, to $1.10 per lb.
Metal Bulletin's ferro-chrome benchmark indicator suggests that the price would be $1.15 per lb, if settled on June 9.

Metal Bulletin’s weekly base price assessment for 2mm, grade-304 cold-rolled (CR)...

Published

Viral Shah

June 14, 2017

15:11 GMT

London