The quarterly benchmark is negotiated by a leading South African ferro-chrome producer and a major European mill; usually Glencore and Aperam.

The new settlement was announced on Wednesday October 3 to the Johannesburg Stock Exchange by Merafe Resources, a joint venture partner of Glencore in South Africa.

Fastmarkets MB reported in September that most chrome market sources were expecting a reduction of about 15 cents.

“The fourth quarter benchmark is representative of the market and well within expectations,” a market source told Fastmarkets MB.

“It is a slightly smaller reduction than expected, probably due to rising alloy prices in China and the fact that a revision in chrome ore stock estimates had made people more nervous about being able to secure chrome units,” this source said.

Fastmarkets MB’s price quotation for spot high carbon ferro-chrome, delivered in Europe, stands at $1.18-1.28 per lb.