South Africa IFM ferrochrome production rose in the second quarter

  South Africa International Ferro Metals Molybdenum tube Company (IFM) said that this year in the second quarter the company produces ferrochrome 39,454 tons, ring than the first quarter rose 15 percent, exceeding the output of 18,505 tons last year twice, because two furnaces restarted.
     CEO Chris Jordaan said: "We have achieved stability in the business performed well, two furnaces fast and efficient start-up and increase the second furnace at the conclusion of repurchase agreements." II furnace in February 15 offline to May 31 each year as the South African power utility Eskom's electricity repurchase agreements, in order to confront a wide area Sassen hemisphere summer peak demand for electricity shortages.
     Market remains challenging global economy in the second quarter ferrochrome manufacturers reduced growth, which affects the demand for stainless steel. Therefore, Europe's third-quarter ferrochrome benchmark settlement price of $ 1.125 / lb chrome, compared with the second quarter, prices fell 14.5 cents / lb chrome.
     IFM, said: third quarter is expected the market will tighten, Chinese ferrochrome production costs rise, to enhance the global ferrochrome prices. China's supply and demand fundamentals remain under pressure, but because of chrome ore and ferrochrome inflationary cost pressures, there is little room for further price reductions. Smelter continued cost pressures are expected to increase ferrochrome production costs, which will lead ferrochrome prices.
     Despite the increase in production, the company ferrochrome sales were down 10 percent to 37,665 tons. Most shipped to Europe, a number of contracts sold to the United States and India.
     The company said that during the period from June to August ferrochrome production is likely to decline 7-10%, because usually when the winter peak tariffs levied will reduce yields.