Following prolonged weakness in the metallurgical chrome ore and ferro-chrome markets this year, a number of participants have reduced their FeCr output in recent months, in an attempt to contain the amount of surplus available.
Prices for South African UG2 chrome ore as well as ferro-chrome have been depreciating throughout the year.
Fastmarkets’ chrome ore, South Africa UG2 concentrates index, cif China
, was $140 per tonne on November 8, down from $183 per tonne on March 8.
In ferro-chrome, European prices hit a 10-year low earlier this year, and remain weak.
Fastmarkets’ price assessment for ferro-chrome, high carbon, 6-8.5% C, basis 60-70% Cr, max 1.5% Si, delivered Europe
, was $0.80-0.85 per lb Cr on November 8, compared with $0.97-1.03 per lb Cr on January 4.
The low-price environment has forced a number of major market participants to reduce their FeCr output to the market.