NSSC Accepts Ferrochrome Price Hike by Extrata for Jul-Sep Shipment

Nippon Steel and Sumikin Stainless Steel Corporation (NSSC) agreed at the end of last week to purchase ferrochrome from Extrata of Switzerland at 6.3% higher price for July-September shipment from April-June. The purchase price increased by 17.6% when NSSC accepted the price hike twice in a row for April-June and July-September shipment. NSSC suffers 5,500 yen per tonne of cost up for stainless steel products including 18% chrome. NSSC seeks to pass the rising material costs onto the stainless steel product prices including higher nickel cost price.Ferrochrome price increases to CIF US 80 cents per pound of purity for July-September shipment by US 4.75 cents from April-June, which accounts for US$ 917 or 105,280 yen for ferrochrome ore with 52% purity. The price approaches record US 83 cents in April-June 2005.The supply of stainless steel is tightening mainly in Europe thanks to the demand recovery. European stainless steel makers also accepted the price hike of ferrochrome in June. NSSC sought less price hike between Extrata when NSSC continued the output reduction and the supply and demand conditions differed in Asia from Europe. However, NSSC considered the stable operation of Extrata’s chrome mine in South Africa was necessary for NSSC’s stable products supply and finally accepted the hike.