Eti Krom sees US ferrochrome opportunity after DLA exit
Nov 18, 2010 | 01:42 PM
| Thorsten Schier
A moratorium on sales from DLA Strategic Materials has tightened ferrochrome supply and boosted U.S. prices, creating an opportunity for importers, market participants told AMM.
"Everybody and their mother will be bringing material to the U.S.," one U.S.-based trader said, referring to Indian and Zimbabwean material. "This market is the highest in the world."
Turkish ferrochrome and chrome ore producer Eti Krom AS plans to take advantage of the buoyant market and the vacuum left by the DLA by bringing about 30,000 to 50,000 tonnes of ferrochrome into the United States in 2011, Eti Krom sales manager Cengiz Onal said.
The company—owned by Istanbul, Turkey-based Yildrim Group, which is run by Robert Yildrim—started shipping to the United States in the last quarter of 2009 and has imported 20,071 tonnes so far this year.
Eti Krom will set up a communications office in Pittsburgh in either December this year or January next year."We foresee that the USA will import more than 500,000 tonnes next year due to this situation (the DLA leaving the market) colliding with the aspects that we expect an improving global economy and better expected U.S. steel and stainless steel production in 2011," Onal said.....
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