The European ferro-chrome benchmark rolled over at $1.08 per lb for the third quarter and the Japanese benchmark, which follows the trend of Europe, is expected to roll over at $1.16 per lb.
After the benchmarks are negotiated by a leading ferro-chrome producer and a major mill, suppliers and their customers negotiate discounts, which have grown as wide as 30% in recent years, leaving the headline number meaningless to ferro-chrome producers.
Today, spot prices in Europe, China and Japan are roughly at parity when all terms are considered.
Metal Bulletin’s high-carbon ferro-chrome price
is at 92-98 cents, delivered in Europe, and its South African charge chrome index
is at 78 cents per lb, cif Shanghai. Charge chrome prices are at about 83-87 cents per lb in Japan, depending on delivery terms and about 85-86 cents in Europe on a delivered basis, according to market sources.