[miningmx.com] — MERAFE Resources (Merafe) has dropped its ferrochrome production forecast for the months of June, July and August also citing the temporary weaker market conditions, reported earlier this week by International Ferro Metals (IFM).
Merafe is the minority partner in the Xstrata-Merafe chrome joint venture which is the world’s largest producer of ferrochrome.
The company said in a trading statement released on Wednesday that the joint venture would run at about 50% of operating capacity from June to August instead of the previously announced level of 65% because of “current market conditions”.
Merafe also announced it expected to reported headline earnings per share of between 3c and 4c for the six months to end-June compared with headline earnings of 7c for the comparable period of 2010.
Ferrochrome and nickel are the essential ingredients required for the manufacture of stainless steel.
IFM CEO David Kovarsky reported on Tuesday that, while the outlook for stainless steel remained strong with record production forecast for 2011 and 2012 production had dropped in the second quarter of this year compared with the first quarter.
“This has rippled through to ferrochrome demand,’ he commented.
