Europe Stainless Makers Arrives Price Hike by 35% with Ferrochrome Suppliers

European stainless steel makers agreed with ferrochrome suppliers in the price hike of ferrochrome by about 35% for April-June shipment from January-March shipment, according to Japanese concerned source. The price rebounds after 2 quarters when stainless steel demand is recovering while electric power cost is rising in South Africa. This ferrochrome hike equals to the cost up by about US$ 139 per tonne for 18% chrome series stainless products. Stainless product prices are expected to be pushed up.

European major stainless makers seem to have agreed at 35 US cents per pound of chrome. If Japanese stainless makers approve the price hike at the same level, Japanese stainless product price would rise to 144 US cents for April-June shipment. Ferrochrome price might increase by 1.9 times for April-June from the same period of last year when stainless demand stayed at the bottom level in recent years.

Electric power cost is rising largely in South Africa where major ferrochrome suppliers are intensively located. The price increases by 25% in April and by 80% for July-September. The power cost has doubled in 3 years and, as a result, ferrochrome suppliers have requested the price hike strongly.