LONDON/JOHANNESBURG, July 5 -- Ferrochrome producers in South African, the world's largest producer, agreed a 4 percent fall in the third-quarter contract settlement price, Merafe Resources Ltd (MRFJ.J: Quote) said on Friday.
Merafe, which runs a joint venture with mining group Xstrata (XTA.L: Quote), said the price would fall to $1.30 per pound from $1.36 in the second quarter.
It did not give details, but analysts had expected a decline after a drop in stainless steel scrap prices and a slowdown in stainless steel orders.
Prices for ferrochrome, a key component in stainless steel, jumped by 35 percent in the second quarter as demand rebounded.
The global economic downturn last year hammered the sector, forcing sweeping shutdowns.
Xstrata along with Kazakh mining group ENRC (ENRC.L: Quote), are among the world's biggest ferrochrome producers, while International Ferro Metals (IFL.L: Quote) is a junior producer listed in London.