| The TEX Report Topics < Ferro Alloys > | |
| HOME >> Topics List >> April, 2009 >> 22 (Wed) |
| Price Of South African FeCr For Q2 / 09 Is Reduced By 10 US-Cents / Lb. From That For Q1 |
| = This Price Reduction Has Been Agreed Upon Between NSC Sumikin Stainless And South African Producer |
|
It was known on the 21st of April that the price (benchmark) of South African charge chrome to be purchased by Nippon Steel & Sumikin Stainless Steel for shipments in April - June quarter of 2009 has reached an agreement with South African producer to be reduced by 10 US-Cents per lb. of Cr from that fixed for the preceding quarter of January - March. Consequently, the benchmark price of South African charge chrome for April - June quarter comes to 77 US-Cents per lb. of Cr CIF Japan. The level on stainless steel production in Japan has still continued to be low and a scale of the quantity to be purchased by Japan for this quarter is thought to be restricted. The price level of 77 US-Cents CIF will be the lowest one since that (75.3 US-Cents) fixed for April - June quarter of 2006 and has been mainly influenced considerably by spot price of high carbon ferro-chrome (including charge chrome) prevailed in January - March quarter. In order to accord with this aspect of spot price, a price reduction of 10 US-Cents per lb. of Cr has been materialized in Europe and Japan but spot price of high carbon ferro-chrome has turned to rise from the beginning of April and, therefore, the benchmark price of South African charge chrome settled for April - June quarter of 2009 has a big probability to come to the bottom. Indian high carbon ferro-chrome was once offered at discounted prices but has turned to rise from the beginning of this week and is now being offered at 65 - 66 US-Cents per lb. of Cr CIF Japan by a rise of 8 US-Cents per lb. from the bottom. In view of the fact that South Africa comes in winter season (July - September quarter) and higher fees of electric power are applied for the season, the cost to produce ferro-chrome in South Africa is supposed to become more severe (to have a loss) and the ability to supply ferro-chrome from South Africa will be restricted. Accordingly, the circumstances of prices for ferro-chrome have at last turned to an upward tendency. It has passed 7 months as a period to remain in obscurity since South African producers determined in October of 2008 to reduce their production of ferro-chrome. |
| last modified : Mon 27 Apr, 2009 [10:49] |
