[miningmx.com] – FERROCHROME price increases were expected from April, the month when Eskom price increases kicked in pushing up cost pressures, said International Ferro Metals CEO, Chris Jordaan.
“This is expected to spill over to Europe as well as positively affecting expectations on the European Benchmark Price,” said Jordaan. He was commenting in the firm’s December quarter figures in which output increased 11% to 53,517 tonnes quarter-on-quarter.
In October it was announced that Eskom would be allowed a 12.69% increase in the tariff in order to recover R7.8bn in unbudgeted costs. The tariff had been previously agreed at about 8% a year.
“The availability of chrome ore will be challenged in the medium to longer term as producers in China will have to compete globally for a non-expanding ore basket to meet their expansion targets,” said Jordaan.
“The cost pressures are mounting in the ferrochrome industry and current output will be hampered unless there is some price relief,” he said. Ferrochrome is an ingredient in the production of stainless steel.
