Turkey's Yildirim Group would apply to the European Commission to open an anti-dumping case against ferrochrome imports from India, Russia, Kazakhstan and South Africa, chief executive Robert Yildirim said yesterday.
Yildirim Group, which has slowed ferrochrome production at the four furnaces at its Swedish company Vargon, will cut output totally at the end of next month until November.
Yildirim said cheaper imports had driven European ferrochrome prices below the cost of production for the firm, which imports chrome ore from Turkey.
"We will apply to the European Commission in Brussels to open an anti-dumping case against those four countries to protect ourselves from injury," Yildirim said.
"Stainless steel mills are not buying the amount their contracts oblige them to buy, which is forcing prices down. Low-cost producers in India, South Africa, Kazakhstan and Russia also bring the materials to Europe at a low price."
Global ferrochrome prices tumbled in response to slumping demand, forcing producers to cut output in recent months.
Ferrochrome is used in stainless steel to stop corrosion.
Yildirim suggested an anti-dumping tax could be exercised against the imports from the four countries.
He said Vargon was operating at about 30 percent capacity, with two furnaces working at 50 percent capacity.
Two furnaces had been closed since October, he said.
"At the end of this month one more furnace will be shut down and the other one will be shut down by May 28. At the end of May we will be shut down until November 1, and we will see. The market - if it recovers, we will reopen, if not, we will stay closed," Yildirim said.
Source: Reuters/Business Report (South Africa)
No comments:
Post a Comment