Iron has a value in FeSi and FeCr so charge for it

My post on charging for the iron content in ferrosilicon and ferrochrome got the most attention by a wide margin. There weren’t many negatives except a few and most were that 1, it hasn’t been done before (as if change is impossible) and 2, it could lower the underlying price of either the silicon or chrome.

The second was the most interesting to me and I don’t think accurate. Iron is a major component in both commodities, not a trace element, and more important it is of value to the buyer. Just like silicon in silicomanganese, the value of the iron has to be accounted for. As for the mills, there is no economic reason why they would have to devalue the silicon or chrome price in either commodity. The mills have had no problem in putting surcharges on their steel prices accounting raw materials, transportation, and energy. It won’t be that material.

As Bill Clinton said: Make change your friend.

ps it’s nice that you can email me directly, but if you want to make your opinion known to a wider audience, use the comment section

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