NSSC Keeps Ferrochrome Purchase Price Flat from South Africa

Nippon Steel & Sumikin Stainless Steel Corporation (NSSC) announced last week the firm agreed with South African ferrochrome producers such as Samancor to keep ferrochrome purchase price unchanged for January-March shipment from October-December 2006. The price stays at the record high level, although NSSC refused the hike offers from South African producers. NSSC prospects the price would rise after April-June shipment with high level production of stainless steel products. The firm seeks to pass the high material costs on the selling prices. NSSC’s purchase price kept flat at CIF US 83 cents per pound of ferrochrome for January-March shipment from previous quarter, which accounts for US$ 951.5 or 115,400 yen per tonne of 52% ferrochrome. The price temporarily had decreased to US 68 cents per pound from the highest in April 2005 and rebounded to the highest level in October-December 2006 due to increasing production of stainless steel products. Ferro chrome supply capacity by South African producers is increasing. However the supply keeps tight when European demand continues strong and cheaper products from China decreases due to Chinese tariff hikes. NSSC appealed that the firm could not pass increasing material costs on the selling prices for chrome series stainless steel products enough yet and refused ferrochrome hike by South African producers. The producers are likely to seek price hike again after April.