The Q4 (October to December) 2012 benchmark prices were cut by USD 0.15 per pound from the Q3 prices, i.e. USD 1.18 per pound for Japan and USD 1.10 per pound for Europe. This was another cut following the one in the preceding quarter. Of course the cut substantially damages the profitability of the South African producers, but the Japanese buyers all welcomed it. The current spot price level of high carbon ferrochrome is USD 0.85 to USD 0.90 per pound for large lots, but few Japanese stainless steel mills can enjoy the attractive level, as they are mostly obligated to receive deliveries under long term contracts, leaving no room for the cheap material under the operational rate of about 80%.

Low carbon Ferrochrome (C<0.1%):
The Q4 (October to December) 2012 prices for large lot buyers have been fixed at USD 2.02 to USD 2.05 per pound after long negotiations continued until October 9. In a recent tender, however, a Japanese producer is said to have offered below USD 2 per pound, which is, according to a market source, difficult for producers abroad to compete with at this moment but they may have to do so sooner or later.