Stainless steel: Ferrochrome prices remain stable

by Gerber Group | Sep 4, 2024

4 September 2024 – Asian ferrochrome prices, which are relevant for stainless steel production among other things, have been extremely stable for some time, despite occasional volatility for several months. And is this report too politically explosive? After a long delay, the EU Competitiveness report is being presented today in Brussels.

According to several media reports, the long-awaited and closely guarded report on the future of European competitiveness will be presented today, Wednesday, by former European Central Bank President Mario Draghi to the heads of the newly elected EU Parliament and selected EU diplomats.

According to sources, the report was deliberately withheld by the Commission in Brussels and Commission President Ursula von der Leyen and delayed until September. Background: In Brussels, there were fears about the contents and their negative impact on Ursula von der Leyen’s possible re-election.

In response to the rumours of a deliberate delay to the report, Ursula von der Leyen said in early July 2024 that the report was still ‘in progress’.

The contents of the Draghi Report had already become known in April and also that it could be withheld. This led to questions from the EU Parliament, which was only answered by the Commission in July 2024 with von der Leyen’s statement ‘is still at the drafting stage’ and the other questions from the Parliament were completely ignored.

Even if hardly anything is known about the actual content of the Draghi Report on European competitiveness, and if it does come directly from Mario Draghi, he is apparently in favour of a pragmatic approach to the EU Green Deal and even sees it as a threat to the competitiveness of European companies.

As soon as further details on this much-anticipated and apparently dreaded report become known, we will of course revisit the topic for you.

Ferrochrome prices from India and China, which are important for stainless steel production, have been slightly volatile up and down over the last 6 to 12 months, but have hardly moved on average. Depending on the origin (high carbon content 60%, EXW), the 6-month average price is therefore around USD 1323/MT and the 12-month average is about USD 1331/MT.

As the publication of EU ferrochrome benchmark prices from South Africa was discontinued by one of the producers a few months ago, not much more price data can be expected from this source. Due to the high proportion of stainless steel scrap, especially in the European Union, the benchmark prices had lost immense importance in recent years.

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