September 07, 2008

South African ferrochrome price negotiation still on

South Africa is now negotiating with buyers for the second quarter high carbon ferrochrome prices at USD 2 per pound because European stainless mills have resumed their production. Besides, South Africa has reduced its ferrochrome supply by 10 to 15% due to government’s restriction on electricity supply.

It said that European mills has unofficially agreed ferrochrome price of USD 1.95 per pound while South African’s suppliers offer at USD 2.05 per pound for high carbon ferrochrome, but such information has not been proved.

Due to limited supply on ferrochrome, the stock prices for high carbon and low carbon chrome have increased to USD 3 per pound and to USD 5 per pound respectively.