JOHANNESBURG (miningweekly.com) − The European benchmark ferrochrome has been set at $1,35/lb for the second quarter of 2011, South African ferrochrome miner Merafe Resources reported on Wednesday.

This is an 8%, or $0,10/lb, increase from the previous quarter’s $1,25/lb , but was generally slightly lower than market expectations that predicted prices could increase by up to $0,20/lb.

Ferrochrome is a key ingredient in the making of stainless steel and the commodity has seen a strong rise in demand from Asian countries.

Merafe produces ferrochrome in a joint venture with Xstrata.

Merafe had been lobbying for the South African government to impose restrictions on the export of raw chrome ore from South Africa, in a bid to create additional value within the country’s economy.

Last year, South Africa exported three-million tons of unbeneficiated raw chrome ore to China, which was sufficient to produce a million tons of value-added ferrochrome.
 

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