JSE-listed Merafe Resources on Friday advised shareholders that the European benchmark ferrochrome price had been settled at $1.04/lb for the third quarter.
This represents a 13.3% decrease on the ferrochrome price of $1.20/lb for the second quarter, and is the lowest level since the third quarter of 2016.
MBO Metals noted in a brief on Friday that the lower price reflected weakening global stainless steel prices which had been adversely impacted on by high inventories.
"We are already seeing ferrochrome supply adjustments on the back of lower prices, with Afarak Group idling two furnaces in South Africa.
"We see European stainless as the weakest global market given lower demand and pressure from imports, and the situation may be about to get worse with Acciai Speciali Terni in Italy looking to add about 10% more capacity over the coming year," MBO added.
Merafe holds a 20.5% interest in the Glencore-Merafe Chrome Venture, which operates a number of ferrochrome plants in the North West, Limpopo and Mpumalanga.