Japan Stainless Makers to Approve 55% FeCr Hike for April-June

Japanese stainless steel makers are likely to agree with South African ferrochrome suppliers in price hike by 55% for April-June shipment compared with January-March. Japanese source said European stainless steel makers already approved the hike and Japanese stainless steel makers are also expected to accept the hike after the ongoing negotiations. Ferrochrome price would hit the new record by the widest-range hike for 2 quarters in a row. The hike would represent 28,600 yen per tonne of cost up for stainless steel products with 18% chrome. Stainless steel product prices are likely to rise more.European stainless makers agreed in ferrochrome price hike by US$ 0.71 per tonne of chrome for April-June shipment. Ferrochrome supply keeps tight against the demand when stainless steel product output is recovering worldwide and chrome production is slow due to electric power crisis in South Africa. Ferrochrome spot price currently hit US$ 2.5 per pound due to supply concerns.Japanese stainless steel makers are expected to approve the hike for requirement of ferrochrome with tight supply. Ferrochrome price would increase by 2.2 times from a year earlier if Japanese makers would settle the negotiation as expected.