[Ni] Spot Price of Ferrochrome Reports First Rise This Year

SHANGHAI, May 20 -- The operating rates at stainless steel factories in Asian area were relatively higher, boosting the market confidence, and the spot price of high carbon ferrochrome rose to Cents 65-75/lbs from previous Cents 60-70/lbs, which is the first rise for ferrochrome price this year. Ferrochrome price has reached the highest level of USD 2.45-3.65/lbs on May 2nd last year.

    Chinese demand increases contributed to the increases in ferrochrome price. China has imported 500kt of ferrochrome since 2Q, but a total of 600kt imports can be able to meet domestic demand. Additionally, the capacity utilization rates of many stainless steel mills in other regions in Asia have reached over 80%, also leading to the increases in ferrochrome demand. However, the capacity utilization rates in Europe and the US still remained low.

    Some market insiders doubt current demand is not the actual demand, and they believe current demand will not last a long time for the steel mills in Asia were replenishing the stocks.

    (Edited by CBI China)