Ferrochrome News: IFM Sees Q4 Contract Price At Current Level
South African ferrochrome producer IFM says it does not see ferrochrome contract prices falling below current levels for the fourth quarter. Earlier this month contract prices for the third quarter were set at USD1.30 a pound, a fall of 4 per cent on the second quarter price but a smaller fall than had been expected. Spot market prices are around USD1.18 a pound, down from a level of around USD2.50 a pound in April 2009.
IFM sells much of its output through contracts and into the spot market in Europe and the USA.
Mr David Kovarsky CEO of IFM said that "We are happy with the price. At the moment we're going through a de stocking cycle but it doesn't reflect end consumption. By the end of this quarter we'll start seeing a revival in demand as stainless steel production starts increasing. I wouldn't expect it Q4 price to be lower than USD 1.30."
Mr Kovarsky said that "We are seeing a contraction in global steel production globally, particularly in China and Europe. The immediate challenge is volume in this quarter but I think they will pick up in the next quarter."
He added that IFM’s output for 2010 will be lower than its capacity of 265,000 tonnes due to the global economic downturn.