The price of South African charge chrome for shipments in April - June quarter of 2008 is supposed to be on offensive and defensive battle of US$2 per lb. of Cr. The production of stainless steel in Europe has been recovering on a basic tone from the beginning of this year but, on the other hand, in view of the troubled production of ferro-chrome in South Africa caused by a crisis of electric power ( anticipated to decrease the production by 10 - 15% ), stainless steel mills are in the direction to conclude the negotiations at an early opportunity.
It is informed that some of stainless steel mills in Europe have unofficially agreed to the proposal of US$1.95 per lb. ( benchmark price ) but, in view of the circumstances which South African producers offered charge chrome at US$2.05 per lb. of Cr, part of major producers denied this information. However, since the quantity of high carbon ferro-chrome to be supplied to the world market has been restricted, spot price of this ferro-alloy has already risen to a level of US$3.00 per lb. and spot price of low carbon ferro-chrome has also risen to a mark of US$5.00 per lb. Therefore, under this situation at present, there is no reason to prolong the negotiations on price of charge chrome for April - June quarter. |
