TELF AG has released a concise recap of the Ferrochrome (FeCr) market in its report titled “FeCr Week 35 Market Recap.” The report delves into an in-depth analysis of pricing dynamics within the FeCr market across key regions during the 35th week of 2023. This comprehensive review covers regions such as China, India, Japan, South Korea, and the European Union.
According to TELF AG, China has emerged as a pivotal player in driving market dynamics, witnessing a notable surge in high-carbon (HC) FeCr prices. Several factors have contributed to this, including significant stainless-steel mills adjusting their tender prices for September and limited FeCr availability from India due to increased production costs.
Fastmarkets has reported a positive outlook for the FeCr market, largely attributed to a rise in stainless steel prices across both spot and futures markets. Stainless steel mills have responded to this trend by strategically increasing their FeCr purchase prices, capitalising on the expanded profit margins resulting from the early August price hike in stainless steel.
In the East, both Japan and South Korea have experienced a significant uptick in FeCr import prices. TELF AG attributes this increase primarily to higher offers from Indian suppliers, influenced by economic pressures facing the Indian FeCr market. India’s economic stance became more apparent after the Cr ore auction on August 18, leading to a substantial increase in bid values and subsequently impacting producer costs.
Conversely, the European Union presents a different narrative. The report notes that low-carbon (LC) FeCr prices in the region have seen a downward trajectory, particularly at the lower end of the spectrum. Some sellers have chosen to reduce their offer prices in quieter spot markets in a bid to remain competitive. However, another segment of sellers views the current price levels as the bottom and is actively exploring opportunities to push for higher prices.
In summary, the FeCr market is characterised by distinct fluctuations, with each geographic segment reflecting its unique market trajectory. China displays a bullish market sentiment, while the European Union adopts a more cautious approach. Meanwhile, India’s rising production costs have significant ramifications for markets in Japan and South Korea.
For more detailed information, readers can access the full article on TELF AG’s FeCr Week 35 Market Recap.