Despite sellers saying that all the US 4% ferrochrome buyers were committed for all of 2018 and there wouldn’t be any worry about cheap spot sales, it happened—just like it happened in silicon metal.
The higher value of the US dollar vs. most currencies plus the loss of the Chinese ferrochrome market to imported ferrochrome results in a diversion of material to the US, especially by second-tier smelters. And, even one major South African smelter was swapping in order to make or mask sales.
“I tried selling at $1.12,” one seller said, ”then at $1.10, then at $1.08, then at $1.06 then at $1.04 before I got any nibbles. It’s a $1.02 market now.” And, everyone was talking about the recent arrival of 15 containers of uncommitted metal into the US. i
The sellers feel that ferrochrome is “lost for the year” and it is better to make a sale now than wait until later when the price will be even lower. “”Waiting is suicide,” another seller said. “I could care less of what happens to the (Glencore) benchmark in the fourth quarter. I only care about the market and the price now. I have wiggle room under the requirements contracts.”
A buyer said the only realistic price is the prices that are being offered now, but a published price.
Another major mill said that his prices outside the US all start with a 8 now.