Ferrochrome--South African production cuts to keep supply in check

摘要

The short term health of the ferrochrome market is undoubtedly dependent on producer discipline. The expected decline in stainless steel output and ferrochrome consumption in Q3 could tip the ferrochrome market into surplus if production remains flat at Q2 levels. Early indications, however, suggest that South African output will be restricted in Q3 with the size of the cutbacks reliant on levels of demand. The other factor encouraging output curtailment in South Africa is the higher winter electricity tariff which came into effect on June 1st and has added around 12-130/lb to production costs for local producers.