- Other stainless steel producers expected to lift prices
- European tags up by 5 cents, though mills sought cuts
Japan Metal Daily: Japan Steel has agreed with several ferro chrome manufacturers in South Africa to raise prices of the key stainless steel raw material by about 3% for July-September shipments compared to the previous fiscal year. This is the second consecutive quarter in which ferro chrome prices were raised in negotiations.
Revised prices of high-carbon ferro chrome stood at $1.53/pound (lb), rising by 3.4% q-o-q as well. Other stainless steel manufacturers are expected to lift purchase prices too.
Prior to negotiations in the Japanese market, net prices in Europe were settled at 5 cents higher. In Europe, buying interest for ferro chrome has been poor due to lacklustre demand for stainless steel. European stainless steel manufacturers had asked for price reductions in negotiations.
On the other hand, on the producer side in South Africa, rising electricity prices and other factors have become chronic. While leading producers such as Samancor and Glencore have moved to cut production, they demanded a price hike of more than 5 cents.
Japan Steel decided to accept the price increase after the hike in Europe was settled.
Note: This article has been written in accordance with a content exchange agreement between Japan Metal Daily and BigMint.
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