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| Price Of Charge Chrome For Shipments To Europe In Q3 Rises By 4.75 US-Cents/Lb |
| = The Matter Was Settled With A Major Stainless Steel Company / Germany In Last Week |
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The negotiations with stainless steel mills, mainly in Europe, on price of South African charge chrome for shipments in the third quarter ( July - September ) of 2006 have been proceeding and, on the end of last week, this matter was settled between a major stainless steel company of Germany and a leading ferro-chrome producer of South Africa. It was informed that the price of South African charge chrome for July - September quarter has been settled by a rise of 4.75 US-Cents per lb., following a rise of 7.25 US-Cents per lb. settled for shipments in April - June quarter. In the course of the negotiations, the exchange rate of South African Rand against US-Dollar has weakened to a considerable extent by having felt a repugnance to a raise of prime rate by 0.5% ( new rate of 7.5% ) and the current exchange rate has come down from US$1.00 : R6.5 to US$1.00 : R7.4. Therefore, some of the consumers concerned once had an opinion, which a rise of price for South African charge chrome is not necessary or to be shrunk to 2.75 US-Cents per lb., but the price for July- September quarter has been finally settled by a rise of 4.75 US-Cents per lb. as mentioned above. This rise of price for South African charge chrome for shipments in July - September quarter has symbolized a tightness on supply of high carbon ferro-chrome ( charge chrome ) in Europe. The production of stainless steel in Europe has been continuing on a favorable tone and European mills are in the strong direction to produce more stainless steel with less summer holidays. On the other hand, in order to avoid a higher fee of electric power applied for winter season of South Africa, South African producers decrease their production of ferro-chrome in July - September quarter as usual. However, South African producers have emphasized that, in case to maintain the production of ferro-chrome in South Africa by means of using a higher fee of electric power in winter season, its production cost will increase by approximately 5 US-Cents per lb.. For a reference, in consequence of that the price trend for South African charge chrome to be shipped to Europe in July - September quarter has been settled by a rise of 4.75 US-Cents per lb., it is marked how do stainless steel mills of Japan take an attitude for price of South African charge chrome for shipments to Japan in July - September quarter. Owing to an excess of high carbon ferro-chrome ( charge chrome ) imported into Japan in 2005, the excessive stocks of this ferro-alloy in Japan are anticipated to be still seen in July - September quarter and a rise of price for South African charge chrome for July - September quarter has been materialized in Europe in spite of the excessive stocks of this ferro-alloys in Japan as mentioned above. |
| last modified : Fri 30 Jun, 2006 [10:41] |
