Price Negotiations of Ferrochrome Close to 80.5 Cents
In the price negotiations of ferrochrome for shipment in July-September, the producer of South Africa suggested the consumer of Europe and Asia the price hike by 4 cents from the previous term, according to persons concerned in the industry in Japan. The price would be set to CIF 78 cents per pound for its purity or 894 dollars per tonne for its 52% purity if the negotiations were successful, being close to 80.5 cents in October-December 1995 when the highest price was marked. Japanese stainless steel makers negotiate looking at the Europe makers' attitudes, which is the situation that the fixed price hikes are likely to be accepted.

Ferrochrome price is fixed in every quarter, and it is going up by a total of 35 cents for six consecutive terms by April-June.

Rand, South Africa's currency, rose again. In South Africa, there is also a seasonal factor that power rates rises in winter.

It seems that the stainless steel demand has increased and supply of ferrochrome has been below the demand.

The consumers have the situation that cannot but give priority to stable reservation of materials.

The power of South Africa's production increases that has supply by over 60% would become a focal point. Consumers show intention to respond to fixed cost burdens.
If the price of ferrochrome rises by 1 cent per pound for the purity, stainless steel will raise the production cost by 4 dollars per tonne for stainless steel products of chromium by 18%.

Japanese makers will shift to their products from the prices raised after April-June. If the ferrochrome price increasing by 12 cents, its cost will rise by 5,000 yen per tonne; if it does by 16 cents, that will do by 7,000 yen per tonne.