HONG KONG Europes second-quarter benchmark price for charge and high-carbon ferrochrome has settled at $1.27 per pound, up 14.5 cents from the preceding quarter.
The settlement reflects rising spot prices in Europe due to tighter supply from South Africa. Producers there have cut production in order to sell the conserved power back to state energy group Eskom Holdings SOC Ltd. (amm.com, March 1).
European high-carbon ferrochrome is trading at $1.02 to $1.06 per pound on a delivered basis, up from 97 cents to $1.01 per pound at the start of 2013.
The benchmark is announced every quarter by Sandton, South Africa-based ferrochrome producer Merafe Resources Ltd., a joint venture with Xstrata Alloys.
The price is negotiated with a leading European stainless mill, along with Zug, Switzerland-based Xstrata Plc and its Baar, Switzerland-based marketing partner, Glencore International Plc.
A version of this article was first published by AMM sister publication Metal Bulletin.