TELF AG has released a succinct summary of the Ferrochrome (FeCr) Market titled “FeCr Week 35 Market Recap,” providing an insightful analysis of the evolving pricing dynamics within the FeCr market during the 35th week of 2023. This comprehensive review encompasses crucial regions, including China, India, Japan, South Korea, and the European Union.
According to TELF AG, China has emerged as a focal point in the market dynamics, witnessing a noticeable surge in high-carbon (HC) FeCr prices. This surge is attributed to various factors, including major stainless-steel mills adjusting their September tender prices and a limited supply of FeCr from India due to elevated production costs.
Fastmarkets has reported an optimistic outlook for the FeCr market. This positive sentiment is linked to the upswing in stainless steel prices across spot and futures platforms. In response, stainless steel mills have strategically raised their FeCr purchase prices, capitalising on the expanded profit margins resulting from the early August price increase in stainless steel.
In the East, both Japan and South Korea are grappling with a significant rise in FeCr import prices. TELF AG suggests that this increase is primarily driven by larger offers from Indian suppliers, influenced by economic pressures within the Indian FeCr market. The inflexibility of India’s economic stance became apparent following the Chrome ore auction on August 18, which led to a substantial uptick in bidding values, subsequently impacting producer costs.
Conversely, the European Union presents a different narrative. The article notes that prices for low-carbon (LC) FeCr in the region have experienced a downward trend, particularly at the lower end of the spectrum. Some sellers, in an effort to remain competitive, have chosen to reduce their offer prices in quieter spot markets. However, another segment of sellers views the current price levels as the bottom and is actively exploring opportunities to advocate for higher prices.
In summary, the FeCr market exhibits distinct fluctuations, with each geographical segment reflecting its unique market trajectory. Regions like China display a bullish market sentiment, while the European Union takes a more cautious approach. Concurrently, India’s rising production costs have significant ramifications for markets in Japan and South Korea.
Readers can access the full article at TELF AG’s website under TELF AG FeCr Week 35 Market Recap.
