China uses SA chrome ore exports to boost local ferrochrome production

According to MineWeb, China overtook South Africa as the world's largest producer of steel feedstock ferrochrome in the first six months of this year, accounting for 33 percent of the 4.8 million tonnes produced globally, Merafe Resources said, citing a report by market research firm Heinz Pariser.

8 Aug 2012

"South African ferrochrome exports to China continue to be displaced by domestic Chinese ferrochrome production on the back of unbeneficiated chrome ore exports from South Africa," Merafe said.

Production in Africa's biggest economy also fell sharply after deals signed with power utility Eskom in which producers agreed to reduce output and cut their electricity consumption in return for payment. Merafe said that the compensation provided by Eskom was adequate to cover for lost profits from the suspended output. Merafe's production fell 21 percent in the six months to the end of June after it had shut seven of its furnaces between February and May to help Eskom, which is struggling to meet rising demand for electricity, MineWeb said.

Read the full article on www.mineweb.com.