Tuesday, December 8, 2009

Ferrochrome Producers Reducing Output

TEX reports that the movements to reduce production of ferrochrome are enlarging. Both companies of Assmang and Samancor Chrome in South Africa have entered into the structure to reduce their production of ferrochrome and, following these reductions in South Africa, Eti Krom of Turkey has also moved to reduce their production of ferrochrome.

Eti Krom announced on the end of last week that this reduction in production of ferrochrome has been implemented immediately. Eti Krom had so far operated the facilities by 80% of total capacity but has now decreased this operation rate to 50% of the capacity. Assmang of South Africa already said that one small electric furnace is suspended to operate from the end of November.

Also, Samancor Chrome has possessed 16 electric furnaces but a number of electric furnaces under operations in November has decreased to 10 furnaces.

According to a preliminary report compiled and released by International Chrome Development Association, the world output of high carbon ferrochrome in July to September quarter of 2009 was 1,713,000 tonnes, up by 22.2% QoQ as compared with that of 1,401,000 tonnes in the preceding quarter of April to June 2009 quarter.

The production activities of stainless steel in China have stalled and, since such major stainless steel companies as Taiyuan iron & Steel, Baosteel and Zhangjiagang Pohang Stainless Steel have been reducing their production by reason of maintenance of their facilities, the output of stainless steel in China for October to December quarter is anticipated to have a decline of 13% to 15% from that for the preceding quarter of July to September.

Also, the production of stainless steel in Europe was once forecasted to expand but the reality is supposed to be unable to increase as expected. Furthermore, the output of stainless steel products in Japan still depends on exports and, accordingly, one of leading stainless steel companies in Japan is moving to reduce their production from November.

Source: Steel Guru/Tex

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