In a recent development, the price of ferro chrome bound for Japan has seen a notable uptick, marking the first increase in two quarters. This rise, totaling 5.3% compared to the previous period spanning January to March, translates to $1.6/lb CNF Japan, inclusive of delivery expenses. Notably, Nippon Steel Stainless recently concluded agreements with multiple ferro chrome producers based in South Africa by 28 March signifying strategic collaborations in response to market dynamics.
Amidst a downturn in demand within the European market, suppliers have taken a proactive approach, adopting a bullish stance to counterbalance escalating costs stemming from the surge in electricity prices in South Africa. With projections indicating a looming 13% increase in electricity prices from April onwards in South Africa, suppliers are strategically adjusting their pricing strategies.
Despite encountering sluggish sales of ferro chrome, there’s a discernible trend towards upward adjustments in selling prices as suppliers navigate the persistent rise in operational expenses.
In Europe, demand for stainless steel products appears to have bottomed out. With the increase in prices for stainless steel scrap, stainless steel manufacturers ramped up their usage of ferro chrome, leading to a reversal in spot prices in the market.
Note: This article has been published in accordance with an article exchange agreement between Japan Metal Daily and BigMint.