How the new SA Chrome capacity will affect the supply and demand of ferrochrome in the short to medium term

摘要

1. Stainless Steel destocking is complete 2. Start-up of new Stainless Steel capacity 3. SA Chrome has a competitive advantage 4. Stainless Steel growth anticipated to be 5% per annum 5. Depreciation of the Rand increases capital cost of expansion and hence barriers-to-entry for newcomers 6. Turned-off uneconomical capacity has further reduced F eCr output 7. Based on the above factors, we believe S A Chrome's new competitive capacity will be required : 7.1 for Stainless Steel growth; and 7.2 to replace the less cost effective capacity 10. SA Chrome's production is only 1 years estimated growth.