Revista de Economie Mondiala/ Journal of Global Economics

9-27

Authors: Cristina Bumbac

Basic ferro-alloys are some of the most important ingredients for producing carbon and special steel (using ferrochrome). The market of basic ferro-alloys is somehow independent of other raw materials markets, depending mostly of steel. There are sometimes speculative operations, but they do not have a significant impact on prices. On the one side, producers are concentrated mostly in countries where metals (manganese, silicium, chromium) deposits can be found: mostly Africa, China and Latin America. On the other side, consumption is concentrated in Europe and U.S.A. (recenly also within BRIC countries). This situation generates tensions, especially about prices and long term contracts. The spot market is quite volatile and dominated by traders. The atipical crisis which began at the end of 2007 had not a significant impact on basic ferro-alloys prices, at least not untill 2012.