TEX reported that the time to negotiate with consumers on prices of ferrochrome for shipments in October to December quarter of 2009 is coming. The negotiations with steel companies in Europe on price of South African charge chrome for October to December quarter are being taken place and it is marked to see an extent to rise the price. Also, the negotiations with special steel companies in Japan on price of low carbon ferrochrome to be settled on quarterly base have started from this week and a major Russian supplier has offered low carbon ferrochrome with carbon 0.1% maximum to a stainless steel company at 185 US cents per pound of Cr CIF Japan for shipments in October to December quarter of 2009. This offered price has risen by more than 10 US cents.

The price of South African charge chrome settled with European mills for shipments in July to September quarter has risen by 20 US cents to 89 US cents per pound of Cr on DDP base and, as regards the price for October to December quarter, a view to rise by 20 to 30 US cents per pound of Cr is being spread over the market. Owing to the facts that stainless steel mills in Europe are reviving their production and a substantial reduction in production of South African charge chrome has caused to finish an adjustment on supply and demand of this ferroalloy, the supply situation of South African charge chrome has turned to tighten.

From September of this year, when a period to apply higher fee of electric power for winter season of South Africa is over, charge chrome producers in South Africa are scheduled to increase their production and to resume fully their operations of idled electric furnaces. Accordingly, the quantities of charge chrome to be supplied by South African producers will certainly increase. Having differed from the situation in the first half of 2009, when only China had shown a favorable tone on the demand for ferrochrome, the production activities of stainless steel in Europe and the USA for October to December quarter are expected to recover and this aspect will make a following wind for the chrome industry.

On the other hand, an opportunity to rise price of low carbon ferrochrome delayed to arise but producers' side is currently moving to rise the price for shipments in October to December quarter. Most of steel companies in Japan are anticipated to receive new prices to be offered in this week to next week.

(Sourced from TEX Report Limited)

http://steelguru.com/news/stainless_steel.html