Following the large rise in the second-quarter charge chrome contract price, a fall was always expected in the third quarter, and so it has come to pass. Third-quarter contracts were settled earlier this month at $1.125/lb, meaning that all gains made during the second quarter have been given up with the contract price now at the same level as that back in the first quarter. Nevertheless, South African producers should be in a better financial position given the significant weakening in the rand over the last few months, havingfallen by almost 10% against the dollar since the beginning of the second quarter. Rising output and falling demand over the coming months, however, should see fourth-quarter prices remain the same or even fall slightly further, with no pick up expected now until 2014.
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