TELF AG delves into recent price movements in ferro-alloys market
Essential elements
Ferro-alloys are essential elements used in various industries, including the stainless steel industry, where they play a crucial role in enhancing the durability and resistance of steel products. As with any commodity, ferroalloy prices are subject to supply and demand dynamics, geopolitical tensions, and other factors affecting their availability and cost. In this article, we will explore recent price movements in different types of ferro-alloys.
Starting with chrome ore, we can see that the Chinese port UG2 ore price has continued to increase due to limited market availability. The strengthening FeCr market has also supported the ore market, encouraging traders’ market confidence. However, South African chrome ore prices have slowed this week due to weak demand from the stainless steel industry in China. Producers have resisted lowering their offer prices since announcing the UG2 benchmark price for Q2. Meanwhile, Turkish 44% Cr ore prices have decreased twice this month due to sluggish demand from China and relatively lower production costs.
Moving on to FeSi 75%, we can see that its price has recently increased in China. Producers lifted their offers after seeing downstream magnesium product prices rise. Magnesium prices in China have reportedly jumped by more than 20% recently after news suggested that magnesium producers in Fugu, Shaanxi province, would shut down by the end of April in line with the rectification work from the local semi-coke furnaces.
Next, we have US SiMn prices, which rose on Tuesday following last week’s decline. The price moves reflect a wide range of prices available in the market from regular sellers motivated to keep prices elevated and traders with lower-priced material. In addition, the rise in SiMn prices contrasts with the general downtrend in manganese alloys, evidenced by the drop in US LC FeMn prices on Tuesday.
Finally, prices for US HC FeCr fell slightly on Thursday, marking the first change to the index since late February. Spot demand has been slow for the past few weeks, and any deals reported to CRU were within range. Contract offtakes have been steady, causing sellers to hold firm on offer prices for the spot market. In the past week, prices have shifted closer to the low end of the range. Therefore, CRU assessed US HC FeCr at 290-300 c/lb, EXW, down from 290-305 c/lb, EXW previously. Sources reported that offers for Indian materials have become more aggressive, which could pressure prices for all origins. The lack of buying interest from China also contributes to the bearish sentiment. Prices are expected to fall further unless there is a spot-demand turnaround.
