Electricity price rise adds strength to tight European ferro-chrome market [CORRECTED]

Higher electricity prices have added to the production costs of chrome alloy, especially low-carbon ferro-chrome, during the week to Tuesday October 12, at a time when the market was already short of material with prices at multi-year highs.

Fastmarkets assessed ferro-chrome 0.10% C, average 65-70% Cr, delivered Europe at $3.05-3.25 per lb Cr on Tuesday, up 7-15 cents (+3.6%) from $2.90-3.18 per lb Cr on September 28.
"Producers expect prices to keep rising to as high as $3.50-3.60 per lb Cr in December, but for now there is very little material available on the spot market so it can be hard to even find current offers prices," one trader said.
In addition to the shortage of material in the market, producers have faced increased costs with electricity prices surging.

"Although the market is tight and this is driving prices, there is also cost support as a result of the rising electricity prices. I know electricity makes up around 40% of production costs...

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