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| HOME >> Topics List >> February, 2008 >> 25 (Mon) |
| Price Of Low Carbon Fe-Cr Is Viewed To Rise To Level US$4 / Lb. For Troubled Production In S.Africa |
| = Current Price In Europe Is US$3.75 - 3.90 Per Lb. Of Cr For Carbon 0.1% Max. Material |
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While Samancor Chrome of South Africa has been producing low carbon ferro-chrome at the Ferrometals Plant of Witbank, the production of their IC-3 grade has been troubled by an accident occurred at this plant and, consequently, Samancor Chrome declared force majeure for low carbon ferro-chrome on the 18th of February ( local time ). The suspension to produce this grade of low carbon ferro-chrome is estimated to take 3 to 4 months and the quantity to be reduced by this trouble is anticipated to come to 20,000 - 25,000 tons. Reflecting an accident of this production, spot price of low carbon ferro-chrome in Europe has risen to a level of US$3.75 - 3.90 per lb. of Cr for carbon 0.1% max. material and the price of US$4 will be within hail. Samancor Chrome produces 65,000 - 70,000 tons per annum of IC-3 grade low carbon ferro-chrome, containing 4 ranges of carbon content between 0.5 to 2.0%, and IC-3 grade is used mainly in Europe and Japan as a substitutive material for usual low carbon ferro-chrome. The demand for IC-3 grade in Japan, mainly from special steel mills, is estimated at 15,000 tons per annum. Samancor Chrome produces 30,000 tons per annum of low carbon ferro-chrome at the Middleburg Plant but had an accident of this production occurred in the middle of September of 2007. It took six weeks to restore the operation and, accordingly, the production decreased but, at that time, the world supply of low carbon ferro-chrome was not so tight. Therefore, this suspension of the production did not put so serious impact on price of low carbon ferro-chrome. However, in addition to the matter, which the supply situation of low carbon ferro-chrome has tightened from October - December quarter of 2007, an accident of IC-3 grade production has occurred in this time. There is a big possibility that the quantity of IC-3 grade to be decreased by this suspension of the production will connect directly with a shortage of the supply. Russia is another powerful country to produce low carbon ferro-chrome but, at present, a Russian producer is difficult to increase their production of low carbon ferro-chrome and is rather supposed to have to review the map for supply of this ferro-alloy in order to narrow down the supply to major consumers. This movement is substantiated by the fact that the consumers concerned have asked a Russian producer to increase considerably the quantity of low carbon ferro-chrome to be supplied to them and Russian side is going to select these consumers. Apart from a Russian producer, another country, being able to supply low carbon ferro-chrome to the western market as a substitutive source for South Africa, is China but this country has set up the structure for self-sufficiency. Therefore, the quantity of low carbon ferro-chrome to be exported from China has been restricted. For a reference, Japan imported 1,723 tons of low carbon ferro-chrome from China in the calendar year of 2007. Also, according to the customs-statistics released in China, the total quantity of low carbon ferro-chrome exported from China in 2007 came to 27,043 tons. |
| last modified : Thu 28 Feb, 2008 [11:28] |
