NSSC Keeps Ferro-Chrome Purchase Price from South Africa

Japanese major stainless steel maker, Nippon Steel & Sumikin Stainless Steel (NSSC) agreed the purchase price of ferro-chrome at the same volume with South African major ferro-chrome supplier for the shipping of October-December compared to the shipping in July-September. NSSC followed European stainless steel makers which already agreed the price with the supplier. The negotiation between NSSC and the supplier went long due to the difference of the understanding for the supply and demand. Suppliers are expected to raise ferro-chrome price for the shipping in January-March due to increased spot market price by strong demand and higher iron ore price. The new price for the shipping in October-December is CIF 108 US cents per pound of chrome, which represents US$ 1,238 per tonne for 52% chrome products and the same price in July-September when the price renewed the record for 2 quarters, which increased by 30% compared to October-December 2006.. Worldwide tight supply lifted the price due to tight chrome ore supply from India, which levied export tariff to secure the domestic supply.Suppliers requested the price hike of ferro-chrome to NSSC due to higher electric power charge and iron ore price. Stainless makers resisted the price hike when they reduced the output in July-September due to decreased stainless steel consumption and major makers got into the red. However, spot market price increased to US 150 cent per tonne by 50 cent from the beginning of October when Chinese stainless output recovered and other steel products output which is such as steel plate or 13-chrome seamless pipe is firm.