Ferro-alloy prices to 'fall further before stabilising'

Posted in Industry News on 7th October 2009

The recession of 2008/2009 has affected a vast majority of businesses on a global level, and the metal supply industry is no exception to this. Worldwide nickel prices have fallen, raw materials have dwindled and overall demand has decreased, as company directors attempt to cut down on outgoing costs in an attempt to stabilise depleting profits. The repercussions of this have had adverse affects not only on international trade but also domestic business, with some of the worlds economic superpowers such as China and USA having their previously sturdy foundations shaken.

As the world's biggest producer and exporter of ferro-alloys, China has particularly felt the aftershocks of the downturn in supply and demand. Speaking recently at a steel industry conference, Secretary General of the China Ferro-alloys Industry Association (CFIA), Zhang Zengchan, stated that he expected the situation to get worse before it got better. He expressed: "Ferro-alloy prices are likely to fall further on a weak steel market before stabilising later in the year."

China has recently been experiencing a fall in some ferro-alloy prices in conjunction with declining, domestic steel prices. A further downturn is expected over the forthcoming months. One remedy suggested by Zhang Zengchan that could help stabilise the metal supply economy, lies with the rising price of ferro-alloy elements manganese and chromium ores. He declared: "Due to the rising prices of crucial elements, squeezed profits are likely to force some producers to cut output. Over a period of time this may help stabilise the market price."

William Rowland Ltd are ferro alloy suppliers, and if you would like to find out how we can meet your requirements, please contact us using the Quick Enquiry Form on the right-hand side of this website.

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