ferrochrome prices have fallen to their lowest levels in nearly
three years amid low demand, high inventories and growth in
And while widespread first-half
shutdowns in South Africa under power buyback deals with
Johannesburg-based state power group Eskom led to short-term
supply concerns, they ultimately werent enough to bring
the market into balance.
The South African industry is
calling for consolidation, further cutbacks and an export tax
to stanch the flow of chrome ore to China.
South Africas ferrochrome
industry depends on Eskoms ability to generate sufficient
affordable power. Without it, even the best-laid plans will
The benchmark pricing system
becomes less credible every quarter, but no market participant
has proposed an alternative.
High-carbon ferrochrome is
trading at 90 to 98 cents per pound in Europe, down 17 percent
from this time last year.