Merafe Resources Agrees in Ferrochrome Price Down with European Stainless Makers

Merafe Resources, a major ferrochrome producer in South Africa, announced on December 17 the firm agreed with European stainless steel makers in ferrochrome price down by about 4% for January-March shipment compared with October-December. The firm lowered the selling price for July-September shipment while set the price unchanged for October-December. Japanese stainless steel makers are in price negotiations with Merafe Resources. The price for January-March is likely to decrease, too.

The shipment price will become US$ 1.25 per pound of chrome for January-March, which represents US$ 1,433 or 120,400 yen per tonne for ferrochrome with 52% chrome and decreases by US$ 0.05 from October-December. The price will be 13% lower than the recent high price for April-June while exceed US$ 1.00 for 6 quarters in a row.

If the shipment price to Japanese stainless steel makers is lowered by the same range as European stainless steel makers, the price will be CIF US$ 1.33 per pound of chrome for January-March, down by US$ 0.05 from October-December. This will represent approximately 1,700 yen per tonne of lower cost for stainless steels with 18% chrome.