Nippon Steel & Sumikin Stainless Steel Corporation announced on Monday the firm agreed with South African ferrochrome maker to increase ferrochrome price by 7.5% for April-June shipment from January-March. NSSC accepted the ferrochrome price hike for the first time in 4 quarters when European stainless steel makers already settled such higher price in March. NSSC tries to pass the higher cost on the selling price when the higher chrome price represents around 3,200 yen per tonne for stainless steel with 18% chrome.The new price of ferrochrome is CIF 143 US cents per pound of chrome for April-June shipment, which is 10 US cents higher than January-March level. The new price is 0.1% lower than the level in April-June 2010. The new price is about US$ 1,639 per tonne for ferrochrome with 52% chrome. Stainless steel demand has been firm in Europe and USA since the beginning of the year and the demand recovered in Asia. The South African ferrochrome maker sought around 20 US cents per pound higher ferrochrome price when their profitability is pressured by higher cost including 25% higher electricity cost and higher local currency rate against US dollar. However, the ferrochrome maker concluded the price negotiation at lower hike due to increasing demand uncertainty under political instability in Middle East and North America and the major earthquake in Japan. The ferrochrome makers would offer higher ferrochrome price for July-September shipment and future when the makers still need better profitability despite of the marginal hike for April-June. They could increase the price in and after July-September if uncertainty would decrease in stainless steel market.
No related posts.