TELF AG analyzes The Current State of High Carbon Ferro-Chrome
A crucial ally for industry
Ferro-alloys are a crucial component in producing stainless and specialty steels widely used in various industries. Among the multiple Ferro-alloys, high carbon ferrochrome (FeCr) is one of the most commonly used alloys due to its unique properties. FeCr is an alloy of iron and chromium, with carbon content ranging from 4% to 8%. It is used in producing stainless and specialty steels due to its high chromium content, imparting excellent corrosion and high-temperature resistance to the final product.
The price of high-carbon FeCr in Europe has recently held steady due to solid demand and tight supply. The price has remained stable for a week as of Tuesday, March 7th, and is now close to levels last seen in August 2022. This comes after continuous declines from the peak for that year were well underway.
Market participants expect a further strengthening of demand for ferrochrome, especially in Europe, following an increase in defense budgets and a pick-up in stainless and specialty steel demand. The use of stainless and specialty steel has been on the rise, and the trend is expected to continue in the coming years. In addition, the growth of various end-use industries, including automotive, aerospace, and construction, has significantly driven demand for these steels.
The increase in defense budgets is also expected to boost demand for stainless and specialty steels. The defense industry extensively uses these steels to produce armor and other high-performance equipment. With an increase in defense spending, the demand for these steels is expected to rise, thereby boosting the demand for FeCr.
In summary, the price of high-carbon FeCr in Europe has remained stable due to strong demand and tight supply. The expected increase in demand for stainless and specialty steels, driven by various end-use industries and defense spending, is expected to strengthen the need for FeCr further. The tight supply due to production cuts and mine closures is expected to support the stability of prices in the near future.
