The settlement is negotiated by the buy and sell sides of the sector, represented by European mill Aperam and South African producer Glencore.

The new price was released to the Johannesburg Stick Exchange on Tuesday December 18 by Merafe Resources, a joint venture partner of Glencore in South Africa. .

The market had been anticipating a fall in the benchmark in line with a softening in European and Chinese prices over the past quarter.

“I think it is accurate – it’s a fair benchmark – in relation to drops in the western world and Chinese demand for ferro-chrome,” a producer said. 

Fastmarkets’ ferro-chrome European benchmark indicator was calculated at $1.13 per lb on December 14 for the second consecutive week.

Spot high-carbon ferro-chrome prices have been weakening in Europe due to an increase of Indian material in the market, causing increased competition for traditional suppliers.

Fastmarkets' price quotation for high-carbon ferro-chrome, delivered in Europe, stands at $0.99-1.05 per lb.