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| World Main Bases Are Entering Into Structure To Reduce FeCr Production |
| = Following South African Producers, FeCr Producer In Turkey Is Also Moving to Reduce Their Production |
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The movements to reduce production of ferro-chrome (high carbon ferro-chrome and charge chrome) are enlarging. Both companies of Assmang and Samancor Chrome in South Africa have entered into the structure to reduce their production of ferro-chrome and, following these reductions in South Africa, Eti Krom of Turkey has also moved to reduce their production of ferro-chrome. Eti Krom announced on the end of last week that this reduction in production of ferro-chrome has been implemented immediately. Eti Krom had so far operated the facilities by 80% of total capacity but has now decreased this operation rate to 50% of the capacity. Assmang of South Africa already said that one small electric furnace (No.5 furnace with transformer capacity of 30,000 KVA) is suspended to operate from the end of November. Also, Samancor Chrome has possessed 16 electric furnaces but a number of electric furnaces under operations in November has decreased to 10 furnaces. According to a preliminary report compiled and released by ICDA (International Chrome Development Association), the world output of high carbon ferro-chrome in July - September quarter of 2009 was 1,713,000 tons, having increased by 22.2% compared with that (1,401,000 tons) in the preceding quarter of April - June. In view of a seasonal factor, the world production of high carbon ferro-chrome in October - December quarter of 2009 has a strong possibility to reach a high level but, on the other hand, there is an opinion in the market that, even if high carbon ferro-chrome is produced on a full scale, the world demand for this ferro-alloy has become unstable and, therefore, this increase of the production has no meaning. The world demand for ferro-chrome in October - December quarter of 2009 is unable to be developing on a favorable tone. On the other hand, producers' side has the necessities to sustain prices of ferro-chrome and to maintain its production cost. The production activities of stainless steel in China have stalled and, since such major stainless steel companies as Taiyuan iron & Steel, Baosteel and Zhangjiagang Pohang Stainless Steel have been reducing their production by reason of maintenance of their facilities, the output of stainless steel in China for October - December quarter is anticipated to have a decline of 13 - 15% from that for the preceding quarter of July - September. Also, the production of stainless steel in Europe was once forecasted to expand but the reality is supposed to be unable to increase as expected. Furthermore, the output of stainless steel products in Japan still depends on exports and, accordingly, one of leading stainless steel companies in Japan (Nippon Metal Industry) is moving to reduce their production from November. |
| last modified : Mon 30 Nov, 2009 [11:00] |
