Fallen Prices For Successive 3 Quarters Are Being Stopped

The price of low carbon ferro-chrome to be imported from Russia and Kazakhstan into Japan for shipments in the third quarter (July – September) of 2009 has been stopped to fall after an interval of three quarters. The prices of low carbon ferro-chrome with carbon 0.1% max. for July – September quarter are being negotiated with regular consumers in Japan from last week on the line of 175 US-Cents per lb. of Cr CIF, which has remained as unchanged from that settled for the preceding quarter of April – June.

The price of low carbon ferro-chrome with carbon 0/1% max. contracted with regular consumers in Japan had risen to the very high levels of 510 – 515 US-Cents per lb. of Cr CIF for shipments in July – September quarter of 2008 as a peak but, after that, started to fall to 420 – 430 US-Cents per lb. of Cr CIF for October – December quarter and had continued to fall for the successive three quarters until April – June quarter of 2009. However, the price of low carbon material is at last bottoming out by July – September quarter.

Low carbon ferro-chrome is being consumed mainly by special steel mills but, reflecting a reduction in automobile production, the operations at these mills have delayed to recover but a pressure on production cost and an effect of the cutback are moving to appear. As a matter of fact, Eti Electrometalurji of Turkey has resumed from the 15th of June to operate two electric furnaces for production of low carbon ferro-chrome, which had been idled.