Samancor Adjusts Charge Chrome Pricing Strategy Amid Market Shifts

Samchrome

Samchrome FZE, the Dubai-based distributor for South African ferro-chrome producer Samancor, has announced a reduction in its reference price for charge chrome for the first quarter of 2025. This strategic price adjustment reflects evolving market dynamics following the discontinuation of the European Benchmark Ferrochrome Price (EUBM).

Price Adjustment Details

The new reference price for charge chrome will be $1.35 per pound, marking a 7.5 percent decrease from the current rate of $1.46 per pound. This decision comes in response to the need for a new pricing benchmark after the EUBM, which had served as the industry standard for South African charge chrome with a minimum of 52 percent chrome content sold to Europe, was phased out in June of the previous year.

Market Implications of EUBM Discontinuation

Previously negotiated by Merafe Resources in conjunction with mining giant Glencore and a major European stainless steelmaker, the EUBM had been a global reference point for the charge chrome industry, influencing pricing decisions in Asia and North America as well. Its discontinuation in June 2024 has led to a more fragmented pricing landscape across major global markets, compelling distributors and producers like Samchrome to establish independent pricing strategies to remain competitive.

This shift underscores the broader industry trend towards regionalization and customization of pricing mechanisms in response to local market conditions, rather than relying on a single global benchmark.