Japan Metal Daily: In negotiations on the price of ferro chrome, a raw material for stainless steel, Japan Steel agreed with several ferro chrome manufacturers in South Africa on 7 April to raise the price of ferro chrome for April-June by about 4% compared to the previous fiscal year. This is the first price increase in one year since April-June last year.
The new price is $1.48 for high-carbon ferro chrome. Other stainless steel manufacturers are expected to follow suit.
Supply-demand trends for ferro chrome have continued to ease, reflecting sluggish demand in the European market. On the other hand, in South Africa, the main production area, electricity prices have risen again since April. Due to a series of cost increases, the profitability of chrome manufacturers has deteriorated.
In response to this situation, chrome manufacturers requested a price increase in the price negotiations for April-June. In addition to the fact that spot prices have stopped declining, Japan Steel has determined that a certain price increase is unavoidable in order to ensure stable procurement.
Note: This article has been written in accordance with a content exchange agreement between Japan Metal Daily and BigMint.
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