Japan Q3 ferrochrome price raised to 97 cents

* Japan Q3 ferrochrome price up 26 pct vs Q2

* Term price rises for first time in a year

* (Adds background)

TOKYO, July 9 (Reuters) - The term price for ferrochrome to Japan for July-September has been raised by 26 percent from the second quarter of this year, an official at Nippon Steel&Sumikin Stainless Steel Corp said on Thursday, its first increase in a year.

The term price was lifted to 97 cents per pound, up 20 cents from the second quarter.

The price of ferrochrome, which helps deter corrosion in stainless steel, had been expected to rise partly because of higher electricity costs and a stronger currency in top producer South Africa.

"The producers wanted to reflect the cost-pushing factors such as the rand's roughly 20 percent appreciation from the start of the year and electricity costs rising about 30 percent from the start of the year," the official said.

The European third-quarter benchmark price for ferrochrome was settled last month at 89 cents, also up 20 cents or 29 percent from the second quarter.

"We emphasise stability, and since Europe agreed to a raise of 20 cents, we accepted a settlement at a similar increase," the official said.

NSSC, 80 percent owned by Nippon Steel Corp (5401.T) and 20 percent by Sumitomo Metal Industries Ltd (5405.T), is Japan's largest comprehensive stainless steel maker.

The official also noted that prices in the spot market have been rising over the past few months.

He declined to predict whether the term price could rise again in the October-December quarter.

NSSC typically holds term talks with Xstrata Plc (XTA.L) and Samancor Chrome.

(Reporting by Chikako Mogi; Editing by Joseph Radford)