Nippon Steel & Sumikin Stainless Steel Corporation (NSSC) of Japan announced on the 13th of April that the Company has reached an agreement with South African producers to settle the price of South African charge chrome for shipments in the second quarter (April - June) of 2010 at 144 US-Cents per lb. of Cr by a rise of 35 US-Cents from that for the preceding quarter of January - March of 2010.|
This decision has taken into consideration of the matters, which the costs to produce charge chrome in South Africa are increasing and NSSC has to attach the importance to ensure a stability on supply of charge chrome from South Africa. NSSC has agreed to a substantial rise of 35 US-Cents for charge chrome in this time but said that, in view of the situation on supplies of raw materials, the price of charge chrome for shipments in July - September quarter is subject to the movements on production and sales of stainless steel as its important factors.
The activities to produce stainless steel in April - June quarter have unexpectedly turned to a favorable tone in Europe and the USA and, accordingly, it can be pointed out that stainless steel mills are in a hurry to secure raw materials, causing the particular circumstances. However, there are still many opaque parts for the market situation in July - September quarter and the case, which prices of raw materials for production of stainless steel had risen in July - September quarter as a period of summer vacation, was very few in the past years. The activities to produce stainless steel at mills in Europe and the USA will usually slow down for summer season.