SÃO PAULO Brazilian ferroalloys producer Cia. de Ferro Ligas da Bahia (Ferbasa) has revised its high-carbon ferrochrome price to $1.12 per pound for the third quarter of 2013 from $1.27 per pound in the second quarter.
The new price will be effective from July 1, 2013, and will serve as basis for negotiation with our clients, Ferbasa said in a filing with the São Paulo stock exchange.
In the last quarter Ferbasa hiked its high-carbon ferrochrome price, matching the European benchmark.
The third-quarter European charge and high-carbon ferrochrome benchmark has fallen 14.5 cents to 112.5 cents per pound (amm.com, July 8
The price reduction by Ferbasa follows industry leader, South Africas Merafe, which also announced the same move on the same date, Brazilian brokerage firm Planner said in a report.
Ferbasa benefits from the recent devaluation of the Brazilian real, as its revenue is indexed to the dollar but 85 percent of the companys costs are in national currency.
In addition, the drop in prices is a direct consequence of lower stainless steel prices. The stainless steel sector is the main consumer of ferrochrome.
In Europe, stainless steel prices have fallen 5 percent this year and in China, which is the largest producer and main consumer of the product (high carbon ferrochrome), the decrease was 14 percent. Therefore, the prices of ferrochrome are performing better than what was shown by the product which uses it the most, Planner said.
The companys high-carbon ferrochrome sales in May amounted to 11,773 tonnes, up 4.3 percent year-on-year.
Ferbasa is the only integrated ferroalloys producer in the Americas.A version of this article was first published in AMM sister publication Metal Bulletin.