CURRENT FERRO CHROME PRICE
According to our price analysis of ferrochrome, the current ferrochrome price is slightly upward trend whether it is high carbon ferrochrome, medium carbon ferrochrome, and low carbon ferrochrome. From the manufacturer’s offer at the end of August, the price per ton of ferrochrome increased by 30-40 USD, and the time came to the middle of September, the price of ferrochrome increased by another 20-30 USD.
REASONS FOR THE RISE IN FERRO CHROME PRICES
Let’s take high-carbon ferrochrome as an example to explain why the price is slowly going up. The production of high carbon ferrochrome is mainly composed of raw chrome ore, coke, consumption of electricity, transportation cost of chrome ore, and other miscellaneous expenses.
Because China is already autumn, and about to winter, after winter electricity and other energy consumption is relatively large, in the north of China, the main way to heat or by burning coal and charcoal, heating in the south is mainly by electricity, so the result is that in the case of chrome ore does not increase prices at all, other costs will be further raised, the cost of producing ferrochrome has been slightly higher than the ex-factory price, so the factory production will not be very Coupled with a period of time before the price of ferrochrome continued to slump, buyers in the spirit of buy up not buy down mentality, are waiting and seeing, resulting in manufacturers are not very strong desire to produce, many manufacturers are not prepared for raw materials, such as chromium ore, resulting in a dead-end market cycle, we are stuck in this place.
Ferrochrome producers are reluctant to produce because of the cost, and steel mills are reluctant to buy because of the fall in ferrochrome prices. But these are the situation in the previous period, recently, the profits of steel mills showed a rebound, it is understood that in September the country’s 30 stainless steel mills crude steel row production of 2.57 million tons, ring price increase of 280,000 tons, the demand for ferrochrome in further strengthening. Chrome ore after a period of decline, there is also a strong expectation of rebound, in the expectation of no large-scale price drop in coke and lancet, you can initially judge that the price of ferrochrome has bottomed out. The current price of ferrochrome is still very unstable, and the price of ferrochrome is rising and out of stock in recent days.
FERROCHROME PRICE TREND AND BUYING ADVICE
According to my inquiry to the producers, this month’s ferrochrome has basically been scheduled for production, and temporarily can not find the supply. Not to mention the supply with an advantageous price.
So our suggestion for ferrochrome is that if you have demand in the near future, you can arrange to order early and ask the manufacturer when they can arrange the scheduled production and make a good purchase plan in advance. But if you do not buy plans in the near future, then you can first wait and see, after all, the world is in a recession cycle, in this context, in terms of China’s policy, broad money is actually still over-issued, in order to stimulate consumption, for enterprises and individuals, the financial loan interest rates are constantly reduced, so the first revitalization should be the consumer market, and then for the devaluation of the yuan against the dollar, the export market It should be okay, but the United States is in recession, the specific situation we can not judge.
In general, for ferroalloys, or for ferrochrome such a small classification, in the long run, it is not easy to judge, but in the short term the price has bottomed out.