Ferro Chrome Prices Likely to Come Under Pressure in Q4 CY17

Global Ferro Chrome prices might come under pressure in Q4 CY17 as Ferro Chrome supply is expected to surpass its demand in the market.

The prime factor in ascertaining Ferro Chrome prices is Chinese demand for the commodity, and all indications suggest that the production of Stainless Steel will come down from the present level during the winter season as the Chinese government has issued orders to lower production to curb pollution. The prices of Ferro Chrome will come down as a result in line with limited Chinese demand.

Moreover, as power tariff becomes cheaper in South Africa with the onset of summers in South Africa has resulted in higher production of Ferro Chrome and exports to China have also increased. Moreover, a lower cost of production in South Africa could allow the Ferro Chrome producers there to lower their offer price to encourage higher sales.

With rising South African supply and low Chinese demand expected, the global Ferro Chrome offers are likely to plunge during the 4th quarter of CY17.