Ferrochrome/Production response has been both rapid and dramatic

摘要

The savage downturn in demand for ferrochrome has prompted a rapid and severe supply response. The first to react were Chinese and Indian producers, whose operations became uneconomic once spot prices fell below 1.50 dollars/lb. Anecdotal evidence suggests that of the twenty or so Indian ferrochrome producers, at least two thirds of their joint capacity is currently shut down or running at seriously reduced rates. This implies that India will probably produce no more than 100,000t of ferrochrome in the fourth quarter, down from 230,000t in the first quarter. In addition, most Chinese ferrochrome producers are also either closed or operating at very low levels of capacity utilisation. Industry estimates for fourth quarter Chinese output vary from 100,000-220,000t compared with levels of over 350,000t in the first quarter of the year.