Chromium Market Update (August 8, 2012)

Ferrochrome (HC basis Cr 60 percent) delivered in Europe fell slightly in August from its July average and was trading between $1.09 and $1.14 a pound on August 7, according to data from Metal-Pages. In the United States, it was trading between $1.10 and $1.15 a pound, also down from its average July price. Prices in Europe and the US have dropped from May levels, when the metal plateaued at around $1.25 a pound in Europe and $1.20 a pound in the US.

Market sources told Metal-Pages that several chromium producers in Europe, Russia, and China are stopping production for a few weeks in August in the face of slow demand. “There is so little demand that it does not make sense to continue producing this month,” one producer said.

Chinese ferrochrome (HC basis Cr 50 percent) prices were between 7,400 yuan a tonne and 7,500 yuan a tonne on August 7, below their July average of 7,483.33 yuan a tonne and 7,650 yuan a tonne.