South Aricans See Higher Ferrochrome Prices

South African ferrochrome producers are expecting prices for the metal to rise more than 10% in the fourth quarter.

Mr Jasper Pieters operations director of Hernic Ferrochrome told Reuters at a ferroalloy meeting in Johannesburg that input prices were soaring and ferrochrome may follow suit. He said that "We see almost a monthly increase in various input costs: fuel, coking coal, coal, mining costs.”

He added that "I see ferrochrome prices increasing more than 10% or higher depending on the input costs."Benchmark ferrochrome prices, rose in Europe by 6.8% for the third quarter, to a record level of USD 2.05 per pound, up from USD 1.92 per pound in the second quarter of 2008. Analysts had hoped for a jump of 15% to 20% to USD 2.20 to USD 2.30 per short ton.

Source: Steel Guru