Ferrochrome may rise 24% or more in the second quarter on more orders and power-related production cuts in South Africa, the largest supplier of the raw material, which is used in stainless steel, Samancor Chrome, says.
Contract prices may rise to $1,50/lb or more, from $1,21/lb in the first quarter, Samancor chairperson Danko
Konchar says in an interview from Paris.
“I would say the risk is to the upside of $1,50,” Konchar says. “The increase wilcone crusher manufacturers in chinal have to be substantial, given falling stockpiles and strong demand.’’
Power cuts in South Africa, which accounts for more than half of global ferrocrushing industries lay outchrome output, have disrupted mines and
smelters across the nation. State utility Eskom Holdings cannot meet electricity demand and has asked indus- trial customers cement crushing process in cement plant
to cut use to 90% of normal levels.
Samancor, the world’s second-biggest ferrochrome producer, lost about 20% of output, or 20 000 t, in January through stoppages and reduced power, Konchar says.
Johannesburg-based Sam-ancor, part of closely held Kermas Group, also saw chrome-ore output drop 40%.
International Ferro Metals says it wants to negotiate a second-quarter price of at least $1,50/lb, Metal Bulletin reported on its website.
Quarterly contracts are negotiated between producers and consumers. Cash sales, or so-called spot prices, for charge
chrome, a type of ferro- chrome, have risen as high as $1,70/lb as stockpiles shrink, Konchar says.
Ferrochrome demand has climbed this year as stainless steel makers substitute the metal for nickel, which rose to a
record $51 800/t in London, on May 9. Chrome and nickel are used to protect steel from corrosion.
Switzerland’s Xstrata plc is the largest ferrochrome producer.