NSSC Ferrochrome Purchase Price to Stay in Oct-Dec

Nippon Steel & Sumikin Stainless Steel Corporation agreed with South Africa based ferrochrome suppliers including Xstrata by Tuesday to keep the ferrochrome purchase price for October-December shipment as July-September. European stainless steel makers already settled the price by the end of September. NSSC accepted high ferrochrome price while the firm emphasized stable ferrochrome supply and price are critical both for stainless makers and ferrochrome suppliers.

The new quarterly price is 138 US cents per pound of chrome. The ferrochrome purchase price by NSSC decreased in July-September for the first time in 2 quarters. However, the price was over 40% higher compared with the same period of 2009 and showed 24.3% increase from October-December 2009.

NSSC and the ferrochrome suppliers agreed to hold the line on the price from July-September while the suppliers aimed to increase the price under cost pressure of electricity and South African rand appreciation.

Chrome spot price rebounds when stainless makers in China and Europe increased the production. Despite the slow stainless demand in Japan, chrome price could increase for January-March depending on overseas stainless steel production.