TORONTO (miningweekly.com) – The European benchmark ferrochrome price has been settled at $1,01/lb for the first quarter of 2010, JSE-listed Merafe Resources reported on Thursday.

The price is two US cents lower than the $1,03/lb price in the fourth quarter of 2009.

Merafe produces ferrochrome in a joint venture (JV) with Xstrata in South Africa.

In September, the JV ramped up production to 85% of capacity, in response to firming demand for ferrochrome, which is used in the production of stainless steel.

Late last year, it slashed output to just 20%, as ferrochrome prices plunged and the firm struggled with rising costs.

Shares in Merafe slid 0,78% on Thursday, to R1,28 apiece by the close of trading in Johannesburg.

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