South African ferrochrome miner Merafe Resources said that the European benchmark for ferrochrome has been set at USD 1.20 per pound for the third quarter of 2011.

This is an 11% decrease from the previous quarter's USD 1.35 per pound and 4% lower than first quarter prices of USD 1.25 per pound.

The lower prices are mainly attributable to falling demand from stainless steel makers in the last few months.

JSE listed Merafe operates a JV with Xstrata, which has a combined capacity of 1.98 million tonnes of ferrochrome a year.

(Sourced from Mariaan Webb)