NSSC Accepts 11% Higher Ferrochrome Price for April-June

Nippon Steel & Sumikin Stainless Steel agreed with Xstrata of Switzerland to increase the purchase price of ferrochrome by 11% for April-June shipment from January-March. The quarterly price increases for the first time in 4 quarters. NSSC recognizes lower profitability of South African suppliers under recovery of stainless demand and needs to secure stable raw material supply to keep stable stainless steel shipment following the price hike settlement in Europe last week. The firm will pass the 3,000 yen per tonne of higher cost price on the selling price along with the higher cost for nickel and other materials. The price increases by 7.25 US cents to CIF 75.25 US cents per pound of chrome for April-June, which represents US$ 863 per tonne or 101,500 yen per tonne for product with 52% purity, from January-March. The price rebounded under better supply balance after the price decreased by 5 US cents each for 3 quarter from the peak of 83 US cents for April-June 2005.