Chromium Market Update (May 8, 2012)

Ferrochrome (HC basis Cr 60%) delivered in Europe was trading between $1.23 and $1.28 a pound on May 8, according to data by Metal-Pages. In the United States, it was trading between $1.17 and $1.22 a pound. While prices in Europe rose in April, in the United States they remained in the same range for most of the month, but prices in both regions are above what they were trading between November and March.

Chinese spot chrome ore prices remained stable in the past week as suppliers hold back until they believe the market has reached a peak as overseas prices have risen, Metal-Pages reported.

Data from Metal-Pages showed that Chinese Ferrochrome (HC basis Cr 50%) was trading between 7,400 yuan to 7,600 yuan a ton on May 3, way below the 8,600 yuan level reached late last year and below the 8,000 yuan level reached in March.

“(Chinese) domestic prices for chrome ore are likely to rise further in May, underpinned by increasing overseas prices,” a source told Metal-Pages.

In what is seen a positive development for ferrochrome, which is mostly used to strengthen steel, UK-based industry consultants MEPS said last month  that it expects global steel output to rise 5.4 percent this year compared with 2011 due to strong demand in BRIC nations, the United States and Turkey.

Securities Disclosure: I, Karan Kumar, hold no direct investment interest in any company mentioned in this article.

Chromium Market Update (May 8, 2012)originally posted on chromiuminvestingnews.com

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