Japan: Nippon Steel secures 3% lower quarterly ferro chrome price for Jul-Sep'26 quarter

• First quarterly price decline in six quarters
  
  
• Scant impact on domestic prices due to yen depreciation
  
  

Japan Metal Daily: Nippon Steel has concluded negotiations with several South African ferro chrome producers for July-September 2026 shipments, agreeing to reduce the quarterly benchmark price by around 3% from the previous quarter. Other Japanese stainless steel producers are also expected to follow the revised settlement. This marks the first quarterly price decline in six quarters, following a continuous uptrend since the January-March 2025 contract period.

The new benchmark has been settled at $1.64/lb Cr (high-carbon ferro chrome, contained chromium, delivered basis), down 3% q-o-q from the April-June contract. At the current exchange rate, this translates to nearly JPY 303,000/t ($1,884/t) for standard-grade ferro chrome containing 52% chromium. However, the impact on domestic yen prices is expected to remain limited due to the recent depreciation of the Japanese yen.

The benchmark reduction was primarily driven by lower electricity costs in South Africa. Power tariffs, which had remained elevated for an extended period, recently declined after the country's state-owned utility responded to requests from ferro chrome producers for tariff relief. The easing in production costs encouraged suppliers to accept lower contract prices.

Meanwhile, the global stainless steel ferro chrome market has remained broadly balanced since April, with no major changes in supply-demand fundamentals across Europe and Asia. As a result, the decline in South African electricity tariffs has become the key factor reflected in the latest quarterly benchmark settlement.

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