Japanese stainless steel mills continued negotiation with multiple overseas ferro-chrome producers to fix the purchase price of high-carbon ferro-chrome for the period from January to March 2022 and have come to an agreement on the price at US Cents 188.0 per lb, unchanged from the prior period on December 23. This price is up by 49.8% from the year-earlier period. The price maintains a high-price range, following the prior period.

 

Market participants explained the reasons why the price remained high as follows: Although the demand in China, which is the largest ferro-chrome consumption country, is weak; (1) The demand in European steelmakers is still strong; (2) In terms of supply from South Africa, there are concerns for mines and shipping; (3) The freight increases continuously; and (4) Chinese steelmakers intensifies purchase willingness for ferro-chrome in Southeast Asia.

 

The transition of the prices since the year 2020 is:

During January to March in 2020: Cents 109 (down by Cent 1 ditto), 

During April to June in 2020: Cents 122 (up by Cent 13 ditto), 

During July to September in 2020: Cents 122 (unchanged ditto); 

During October to December in 2020: Cents 122 (unchanged ditto); 

During January to March in 2021: Cents 125.5 (up by Cents 3.5 ditto); 

During April to June: Cents 164.0 (up by Cents 38.5 ditto); and 

During July to September: Cents 164.0 (unchanged ditto); 

During October to December: Cents 188.0 (up by Cents 24.0 ditto);

and During January to March: Cents 188.0 (unchanged ditto).