Contract prices for ferrochrome between South African producers and European steelmakers for the first quarter have tumbled 57 percent to 79 cents per lb amid weak demand, a source at a producer said on Friday.
Ferrochrome, a key component in stainless steel, has seen a sharp fall in consumption, sparking a wave of closures and cutbacks in production.
Business has been very slow and many customers were requesting that shipments be deferred, added the source, who declined to be named.
There has been no settlement yet between South African producers and Japanese steelmakers, but typically the Japanese price is 8 cents higher than the European settlement, he added.
"I'm not sure how that's going to be handled, so far there's been no new business into Japan," the source said.
The settlement of 57 cents was less than expected by many analysts, Michael Rawlinson at Liberum Capital in London said.
"The market had been very much in the dark about expectations around pricing. The worst case brokers forecast we have seen is $1.10/lb... therefore this turnout is a big outlier on the downside."
Source: Reuters
No comments:
Post a Comment