en.Wedoany.com Reported - Nippon Steel has concluded quarterly benchmark price negotiations with several South African ferrochrome producers for shipments in July-September 2026, agreeing to a reduction of approximately 3% from the previous quarter. This marks the first quarterly price decline since the continuous upward trend began in the January-March 2025 contract period, and other Japanese stainless steel producers are expected to follow suit with the revised settlement price.

The new benchmark price is set at $1.64 per pound of chromium (high-carbon ferrochrome, chromium content, delivered price), down 3% from the April-June contract. At current exchange rates, standard-grade ferrochrome with 52% chromium content is approximately 303,000 yen per ton ($1,884/ton). However, due to the recent depreciation of the yen, the impact on domestic yen prices is expected to be limited.

The main reason for the benchmark price reduction is the decline in electricity costs in South Africa. The country's state-owned power utility responded to requests from ferrochrome producers for electricity tariff reductions, leading to a recent decrease in electricity prices that had remained high for an extended period. The easing of production costs has prompted suppliers to accept lower contract prices.

Since April, the global stainless steel ferrochrome market has remained generally balanced, with no significant changes in supply and demand fundamentals in Europe and Asia. The decline in South African electricity costs has therefore become a key factor reflected in the latest quarterly benchmark settlement price.