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Forecasts and market analysis based on price assessments from Fastmarkets MB and Fastmarkets AMM

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March 2019 | Stainless Steels


Power issues cause concern in chrome markets: Chrome/Molybdenum Highlights


Along with the cost of chrome ore, the cost of electricity accounts for a large share of total production costs for ferrochrome.

Ferrochrome
The spring is generally the strongest period of the year for global chrome markets. Stainless steel production often picks up, incentivized by rising demand in the large markets of the northern hemisphere that see activity in the construction sector pick up. This year appears set to follow the usual trend, as prices for a variety of chrome products have begun to head up more quickly in recent weeks.

In part this will be demand driven but it is supply-side issues that are causing most concern at present. In particular we speak of electricity supplies, a key cost component in the production of ferrochrome. Power outages in South Africa and likely restrictions in power usage in ferrochrome-producing areas of China have seen chrome prices bid up further than they otherwise would have been in recent weeks. Upcoming hikes...

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