Ferrochrome prices to fall by 60% in 2009
Ferrochrome prices were negotiated at 69 cents per pound in the second quarter of this year, almost 70% lower
than the 213 cents per pound peak set in July 2008. Prices for chromite have fallen by 73% to USD 140 per tonne
from its USD 520 per tonne peak in July 2008, while prices for chromium chemicals and chromium metal have both
fallen by almost 45%.
Given the weak outlook chromite and ferrochrome demand, prices are forecast to be much lower than those set in
2008. Ferrochrome prices are forecast to average 77 cents per pound to 80 cents per pound this year, as end use
demand remains depressed. However, prices in the fourth quarter of 2009 could increase on the back some restocking.
Chromite prices are likely to follow a similar pattern, with average prices for 2009 at USD 135 per tonne, with a
potential 20% to 30% increase for 2010 as demand returns.
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