NSSC Agrees Ferrochrome Price Hike by 3.8% with Exstrata

Nippon Steel & Sumikin Stainless Steel Corporation (NSSC) announced on Thursday the firm agreed with Xstrata in Switzerland to raise the purchase price for ferrochrome by 3.8% for October-December shipment from July-September. The purchase price increases for 3 quarters in a row by total 22% and reaches the record marked in April-June 2005. NSSC accepted the price hike when the firm takes account of long-term stable procurement for ferrochrome and European stainless steel makers and Xstrata will probably reach an agreement for the hike, though NSSC and Xstrata faced difficulty in the negotiation. The hike range is equivalent to 1,400 yen per tonne of cost up for stainless steel with 18% chrome. Ferrochrome price up would lead the hike for stainless steel products.NSSC’s purchase price increases to CIF US 83 cents per pound of ferrochrome for October-December shipment, which accounts for US$ 952 or 112,200 yen per tonne of 52% ferrochrome. The price increases by US 3 cents per pound from July-September 2006. Ferrochrome price decreased for 3 quarters in a row due to production decrease of stainless steel after the price hit the peak in April-June 2005. The price recovered to the peak level increasing for 3 straight quarters.