NSSC Accepts 13 Cents/lb FeCr Hike for July-September

Nippon Steel & Sumikin Stainless Steel (NSSC) agreed with Xstrata to increase ferrochrome price by 6.5% for July-September shipment from April-June. The price renews the record for 3 quarters in a row. NSSC finally accepted the hike after European stainless makers already settled the negotiation. The higher price, which represents around 5,500 yen per tonne of cost up for stainless items with 18% chrome, could lift the stainless price. NSSC agreed to increase ferrochrome price by 13 US cents to CIF 213 US cents per pound of chrome for July-September from April-June. The price renewed the record for 5 quarters in 6 quarters since April-June 2007. The price increased to 2.6 times during the period. Ferrochrome supply is still tight due to firm demand and limited supply under supply trouble in South Africa while the supply got easier with slower nickel series stainless market than very tight situation before. South Africa based suppliers including Xstrata tried to increase the price level to cover higher electricity.