Merafe Resources, the junior partner in the chrome and ferrochome operations owned by global commodity miner and trader Glencore, said on Thursday the European benchmark price for ferrochrome was set 50% higher for the first quarter of next year at $1.65/pound (lb). Merafe’s shares shot up nearly 10% in mid-morning trade on Thursday to R1.60 on more than 5.5-million shares swapping hands, having reached as high as R1.65 on the announcement. Ferrochrome prices have been weak this year, averaging 95.5c/lb, with the price falling as low as 82c/lb in the second quarter of the year, which was 24% lower than the year-earlier period. Last year, the price averaged $1.07/lb, down from $1.19/lb in 2014. The price recovered to $1.10/lb in the fourth quarter and was set for a significant increase in the first quarter of next year, Merafe said without giving a reason for the higher price. In its interim results to end-June this year, Merafe said stainless steel production, the main source of dem...
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