Ferrochrome Price to Hit New Record in July-September

Ferrochrome quarterly price is likely to renew record for July-September. South African supplier is agreeing with European major stainless makers to increase the price by 13 US cents per pound, according to Japanese sources. Japanese stainless makers are expected to follow the move. The additional hike, which represents 5,500 yen per tonne of higher cost for stainless with 18% chrome, could pressure on the stainless products. If Japanese stainless makers would accept the 13 US cents hike, the price increases to CIF 213 US cents per pound of chrome for July-September, which is 6.5% higher than April-June. The price will renew record 5 times in past 6 quarters through July-September. The price increases to 2.6 times during the 6 quarters. The buyers resisted the additional hike when stainless industry is in adjustment and chrome demand slows down. However, the suppliers in South Africa, which represent more than 50% of the world supply, insisted the hike to cover higher electricity, coke and freight.