Merafe set to benefit from SA’s reduced ferrochrome production
AS SOUTH Africa regained its top spot as the world’s biggest ferrochrome producer, Merafe Resources, the junior partner in the Glencore-Merafe Chrome Venture, said the venture was well placed to take advantage of improved demand and reduced output in the country.Merafe, which is a 20.5% shareholder in the venture, the single largest producer of ferrochrome, noted that four out of seven ferrochrome producers in SA had halted production. Ferrochrome prices fell to 2009 lows during the first quarter of this year when the European benchmark price dropped to $0.82/pound (lb).Global stainless steel output, the primary source of demand for chrome, was expected to grow by 2.8% this year and 3% next year, "indicating increased demand prospects for ferrochrome", Merafe said.During the first half of the year, global ferrochrome output fell by 4% to 5.2-million tonnes, with output in China falling by 17% compared with the same period a year earlier."This resulted in SA reclaiming its position a...
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