Chromium Market Update (January 16, 2013)

Chromium has been a picture of stability thus far in 2013. Metal-Pages noted on January 3 that 99-percent grade chromium metal was stable at 58,000 to 60,000 renminbi (US$9,333 to $9,655) per tonne, and that price range was still in place as of January 14. Chinese chromium metal prices have also held steady during that time period, sitting at 60,000 renminbi (US$9,333) per tonne.

One US trader sees prices picking up as the year progresses, telling Metal-Pages, “I see a bright future for chromium this year, especially when looking at the new aircraft build rates.”

Meanwhile, ferrochrome and alloys producers based in South Africa have been busy signing deals with Eskom, a privately owned electricity utility, Metal-Pages reported. The deals are aimed at granting the companies’ facilities access to electricity from December 2012 to March 2013.

Company news

Metal-Pages data indicates that after reaching settlements with European customers, South Africa-based ferrochrome producer Merafe Resources (OTC Pink:MRAFY) increased its Q1 2013 ferrochrome prices to $1.125 per pound. The 2-percent increase is a small step up from the $1.10 per pound that the company set for the last quarter of 2012.

On a similar note, Brazilian ferrochrome producer Ferbasa upped its high-carbon ferrochrome prices to $1.12 for the first quarter of 2013. A spokesman for the company commented to Metal-Pages that the increase amounts to “about two and a half cents.”