Benchmark ferrochrome prices in Europe have risen 6.8 percent for the third quarter, South Africa's Merafe Resources
The world's biggest ferrochrome producer, Kazakh miner ENRC
ENRC was down 9.1 percent at 1,211 pence by 1145 GMT, while South African-based International Ferro Metals
Merafe's joint venture partner Xstrata
Analysts had forecast ferrochrome prices would jump 15-20 percent to $2.20-$2.30/lb, said analyst Michael Rawlinson at Liberum Capital.
The news has been taken badly by the market which has been ignoring some of the signs we have seen that to our mind show steel raw materials markets are peaking, he said in a research note.
Prices of ferrochrome surged by 60 percent in the second quarter on the back of power shortages and subsequent production shortfalls in South Africa, the world's biggest producing nation.
Ferrochrome is supplied to European steel groups such as ArcelorMittal
Merafe said in March the outlook for ferrochrome prices in 200
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