The settlement is negotiated every quarter by a large South
African ferro-chrome producer and a large European consumer and
has in recent quarters been settled by ferro-chrome producer
Glencore Xstrata and Luxembourg-based stainless steel mill
Aperam. Once the headline number is settled, consumers
individually negotiate discounts which can be anything from 10%
to more than 20%, meaning in most deals, the full benchmark
price is never actually realised. The benchmark normally takes
about two weeks to negotiate but talks this quarter have been
going on for about six weeks and no agreement has been reached.
The producer is understood...