Merafe Resources has advised that the European benchmark ferrochrome price for the third quarter of 2021 has been settled at 156 US cents per pound, a rollover from the second quarter of 2021.
The settlement is announced every quarter by Merafe Resources, which operates a chrome joint venture with trader-miner Glencore in South Africa.
The benchmark is a forward-looking price for the coming quarter. It is settled via negotiations between a leading South African ferro-chrome producer and a major European stainless steel mill.
Robust demand continued to support the high- and low-carbon ferro-chrome markets in Europe this month. The market was supported by strength in the stainless-steel sector leading to shortages in the market, with consumers ramping-up their requirements.
“We have never been so stretched before. There is extremely strong demand,” a producer said. Prices have been supported since the EU announced that it would impose import duties on materials from Indian and Indonesian stainless-steel producers.
This was expected to support Europe’s domestic stainless-steel production and to spur increased demand for feedstock.