Chrome producers’ struggles set to continue amid need to redefine supply-demand balance
Cuts to chrome production have begun to support ferro-chrome prices, but limited demand growth and macroeconomic headwinds likely stifle the potential for a meaningful price increase.
“As an industry we realized [the impact of the uncertain macroeconomic backdrop] too late. We cut production to try to keep the supply-demand balance, which is beginning to work - if you go to the spot market you don’t find much material available,” Yildirim Group president and chief executive officer Robert Yildirim said during the annual chrome panel.
But ultimately, the chrome industry needs to reconsider the supply-demand balance if prices are to sustain at more palatable levels.
“The game is called survivability. 2020 will be a waste for all of us because we will work to survive,” Yildirim said.
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