JOHANNESBURG (miningweekly.com) – The European benchmark ferrochrome price has increased by 16%, to $1,03/lb for the fourth quarter, compared with prices in the third quarter of 2009, JSE-listed Merafe Resources reported on Monday.

Third quarter prices were recorded at $0,89/lb.

However, prices for the fourth quarter of 2009 were still down from those recorded in the corresponding period of 2008. European benchmark ferrochrome prices for the fourth quarter of 2008 was settled at $1,85/lb, which had been a 9,8% decline from the third quarter of that year.

Merafe produces ferrochrome in a joint venture (JV) with Xstrata in South Africa. The JV recently increased its production capacity to 85%, as demand for the stainless steel-making ingredient strengthened. Late last year, it  slashed its capacity to 20%, as ferrochrome prices bottomed out and the company scrambled to maintain costs.

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