Japan: Nippon Steel Stainless secures lower ferro chrome prices for Jan-Mar'25

Japan Metal Daily: Several South African chromium producers have agreed with Japan's Nippon Steel Stainless Steel Corporation to reduce the price of ferro chrome, a key raw material for stainless and special steel, by around 7% for January-March 2025. Similar moves are expected from other companies in the industry as well.

This marks the second straight quarter of price cuts. The new price for high-carbon ferro chrome will be $1.43/lb CNF Japan.

The price drop is due to lower demand for stainless steel in Europe and an oversupply in China, leading to weaker demand for ferro chrome. Falling spot prices in Europe also played a role in the negotiations.

However, the price reduction could further impact the profitability of South African producers, who are already struggling with higher electricity costs. They might seek to raise prices in the following quarter (April-June 2025).

Note: This article has been published in accordance with a content exchange agreement between Japan Metal Daily and BigMint.