Demand for ferro-alloys continues to decline
6 October 2015
In late September, the value of 50% of high-carbon ferrochrome in China maintained at the level 6000−6150yuaney / tonne. At the same time demand from the steel industry continues to fall. Accordingly, decreased 50% and the price of the alloy to the level of 5950−6100 yuan / ton. Despite the decline in the value of the level of business activity remains low. Market participants believe that the price of ferro-alloys will continue to decline. Price by 60% ferromolybdenum in late September was relatively stable. The cost of one ton was 55 000−57 000 yuan, which corresponded 14,40−14,92 USD. Manufacturers, however, say a growing financial pressure. Stocks diverge heavily aided by low demand and infrequent transaction. It is hoped that the cost of 60% of the molybdenum will remain relatively stable in the short term.
In the European market price of ferrochrome supplied IVkvartale be 104 cents / lb. This figure is lower than the results IIIkvartala 3.7%. Such data provided Merafe Resources. The representative of the South African company said the negative impact of the global economic situation. Reference price of ferrochrome has decreased to a minimum in 2015. In this contract the cost is relatively high. Melting company is able to provide significant discounts from the reference price. Moreover, the Chinese spot prices show a downward trend.
In Brazil Ferbasa company in August 2015 in front of increased income from the sale of ferroalloys. A month sales amounted to 18,474 tons. In annual terms, the result improved by 9.3%. The implementation of high-carbon ferrochrome and reached the level of 12,397 tonnes. Compared to the year 2014 an increase of 26.7%. Number of low-carbon ferrochrome sold increased by 146.2% to 1,550 tonnes. However, the implementation of ferrosilicon demonstrates the decline of 30.3% relative to 2014 to 4526 tons. Net income from sales at an annual rate reached 21 million. USD, an increase of 33.7%.
The cost of ferroalloys in North America continues to decline. The industry is said about the complexities of negotiation on ferrosilicon. Spot offers a little bit, the price goes down. The cost of ferrosilicon has fallen to 78−82 pounds / ton from 82−85 lb / ton. Reducing shows and silicomanganese. Previously, it costs 43−44 cents / lb. Now the price has fallen to the level of 41−44 cents / lb.
