Japan to Remove High Carbon Ferrochrome Import Tariff

Ministry of Finance’s adviser group recommended on Thursday Japanese government should remove 5.37% of import tariff for high carbon ferrochrome for fiscal 2008. The ministry will offer the bill to next session of the diet to remove the tariff effective in April 2008. Ferrochrome price hit record US$ 1.08 per pound of chrome under worldwide tight supply. Japanese stainless makers and buyers import almost all of requirement depending on South Africa and other limited sources heavily. Without the tariff, the import cost could decrease by 4 billion yen annually. The import was 807,000 tonnes in fiscal 2006 ending March 2007, of which South Africa represented 56% and Kazakhstan was 32%. The import value was around 76.3 billion yen. The quarterly negotiated price increased by 30% from end of 2006 and tripled from 2001.