NSSC to Accept 20% Ferrochrome Hike for July-September

Nippon Steel & Sumikin Stainless Steel (NSSC) agreed with South Africa based ferrochrome makers including Xstrata and Samancor Chrome to increase the ferrochrome purchase price by 20% for July-September shipment from April-June. The firm followed the record high settlement by European stainless makers. NSSC finally accepted the hike for stable procurement after the resistance under output reduction. The hike represents 8,500 yen per tonne of cost up for 18% chrome stainless items. The firm tries to pass the cost on the stainless selling price. The new price is 108 US cents per pound of chrome, which represents US$ 1,238 per tonne for 52% chrome products and 18 US cents higher than price in April-June. The price renewed the record for 2 quarters in a row. Worldwide tight supply lifted the price due to tight chrome ore supply from India, which levied export tariff to secure the domestic supply. International ferrochrome spot market price is still high at around 120 US cents per pound of chrome despite of the major output reduction by stainless makers.