June 28 (Reuters) – Global prices of ferrochrome, used to make stainless steel, have tumbled to their lowest levels this year due to weaker demand from stainless steel mills in top producer China, according to traders in Asia and Europe.
Low carbon ferrochrome FECRO-LC-RU was last quoted at $1.80 a lb, its lowest since Nov. and down 20 percent since late January. High carbon ferrochrome FECRO-HC-RU is at an eight-month low at 93 cents a lb and more than 30 percent lower since late January.
“The Chinese ports have about 10 weeks of chrome ore stocks and that coupled with reduced ferrochrome demand has sent the prices of ore and alloys crashing,” said Ravi Prakash, marketing and business development head for ferro alloys and minerals division of Tata Steel Ltd.
Stainless steel producers in China are cutting production as a supply overhang has pulled down prices, Prakash added.
China last year accounted for nearly 25 million tonnes or about 54 percent of global stainless steel production.
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