Friday, 02 July 2010
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NEWS ALERT
Q3 benchmark ferrochrome settlement falls 4 pct to $1.30/lb - Merafe
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London, 02 July 2010 - The third-quarter European ferrochrome contract settlement price will be $1.30 per pound, down four percent from the second-quarter level of $1.36, Merafe Resources said on Friday.

This reflects the usual seasonal slowdown in demand and is in line with spot prices, industry sources said.

"The result could have been worse, particularly with considerable negative sentiment in the market," John Meyer of broker Fairfax said.

Merafe, Xstrata's South African unit, sets the quarterly ferrochrome benchmark. The all-time contract peak was $2.13 per pound in mid-2008.

Fairfax said the final quarter could see contract increases, as demand is typically stronger towards the end of September.

"In addition, South African producers should see their cost base ease later in the year as weather improves and demand for power for heating eases leading to lower power tariffs."

Ferrochrome is an alloy used in steelmaking, particularly stainless steel, where output this year is expected to rise around 21 percent to some 31 million tonnes.

(Editing by Mark Shaw)
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