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*Major Consumers / Japan Agreed To Roll Over Price Of South African Fe-Cr For This Quarter
= To Roll Over After Interval Of 6 Quarters, Factors To Reduce Costs Are Continued To Be Discussed
  The price of South African charge chrome for shipments in October - December quarter of 2004 has been settled to roll over after an interval of 6 quarters. Major consumers of Japan have officially agreed in this week to the proposal from Samancor, which is to roll over the price.

  When the costs to produce charge chrome in South Africa for October - December quarter of 2004 are compared with those for the previous quarter of July - September, it is supposed that, by the matters of (1) a fall of coke price, (2) a moderate tone of ocean freight, (3) a release from higher fee of electric power applied for winter season and so on, the costs for this quarter are certainly reduced. However, these factors to reduce the costs have been not involved in the prices of South African charge chrome contracted for shipments in October - December quarter and its conclusion has been carried over as the content to be discussed further. Consequently, the price for this quarter has been rolled over. For a reference, the benchmark price of South African charge chrome for shipments in July - September quarter was 78 US-Cents per lb. CIF and the net price is not known but supposed to be 72 - 74 US-Cents per lb. in view of the prices prevailed in the European market.

  At the negotiations to settle price of South African charge chrome to be shipped in January - March quarter of 2005 and afterwards, the factors to reduce costs for production of charge chrome in South Africa will be discussed again. However, in addition to the costs for production of ferro-chrome in South Africa, various matters, including to secure ( accumulate ) profit for reinvestment, to set up the structure for stable supply of ferro-chrome and so on, have been still left.
last modified : Mon 18 October, 2004 [10:26]
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