[ferro-alloys.com] The European benchmark price onhigh-carbon ferrochrome, or charge chrome, will hold flat at 112.5 cent per lb in the fourth quarter. Not many market participants were surprised, however, as demand is still lackluster among European mills. Others cast doubt to the relevance as discounts historically have reached 10-20% from the benchmark. Despite the number holding flat, the more import issue is to what degree mills will negotiate. Competition is still quite fierce across South Africa and the European ferrochrome market, and even more so in the stainless steel sector. While the outlook is quite different today than it was just three months ago, few were willing to take any chance and meet the market head-on, so any sale moving forward could be met with heavy discussion on terms. Outokumpu revealed its plans, meanwhile, to cutback costs and improve its financial performance in this harsh environment. The company reported that its current cost structure is still remarkably unsustainable in the mid-to- long-run. The company is expected to shutter its Bochum melt shop, as well as reduce capacity in Finland and Germany in regard to annealing/pickling and cold rolling, respectively.

 

“Today’s announcement introduces a solid industrial plan to turn Outokumpu back to profitability,” Mika Seitovirta, CEO, said in a prepared statement. “While painful, these measures are necessary to achieve turnaround in this difficult environment. Implementing these plans will significantly accelerate our financial performance. With this plan, we will ensure the continuation of stainless steel production in Europe and better job security for the remaining more than 10,000 Outokumpu employees in Europe.”