It was known on the 21st of July from Nippon Steel & Sumikin Stainless Steel that the benchmark price of South African charge chrome for shipments to Japan in the third quarter (July - September) of 2010 has been settled between major producers in South Africa and leading stainless steel companies in Japan by a reduction of 6 US-Cents per lb. of Cr.|
The benchmark price of charge chrome for July - September quarter has been reduced as mentioned above and this reduction of the price is thought to have symbolized an opacity of prices for stainless steel products and its related raw materials. In view of the factors to raise production cost, South African producers initially had a strong intention to rise price of charge chrome for shipments in July - September quarter but, in the course of time, the negotiations on price contrarily turned to a reduction. In these days, the exchange rate of Euro Currency against US-Dollar has weakened considerably and a crisis of monetary market has emerged in Europe.
A depression of nickel price has also put a certain influence on price of ferro-chrome. The weakened nickel price has resulted in inducing stockiests, final consumers and their intention to hold back their purchases of stainless steel products. This influence is coming up to the surface in the structure to reduce production of stainless steel and the chrome industry has been also affected by a discount of the benchmark price for charge chrome.