Steady growth in future demand for ferrochrome

Nov. 23, 2010 - PRLog -- Ferrochrome consumption this year is expected to record, but prices are still low, the output of producers under threat, struggling with high costs, the ability to meet demand by 2011 in doubt.

CRU Group is expected to fill the 2010-level high-carbon ferrochrome and chrome ore demand will reach 8.27 million tons, growth of 21%.

Although the European high-carbon ferrochrome prices from the dollar rebounded in 2009 to 1.20-1.30 0.60-0.70 dollars / lb,but the market the other hand,barium titanate price, in June 2007, before the end of 2008 the level of the economic crisis.

Stainless steel production in 2010 increased by 40% growth in domestic energy production will be pushed to new highs worldwide. However, no other market prices too much rebound.

The next five to ten years, steel production growth is expected to unprecedented demand for raw materials, the process of urbanization in China and India surge in demand for infrastructure.

However, due to the high cost of low prices, many manufacturers strive to maintain the existing ferrochrome production capacity expansion is not likely to invest to meet growing demand.

South Africa's electricity and labor costs plus the cost of rand appreciation led to a substantial increase in production in April, the situation can only make matters worse, the cost of electricity in winter will increase by 25%.

Koncar said costs next year will be eased, prices are expected to rise,barium titanate, or the manufacturer or to close production.

Winter taxes introduced mainly to help finance expansion of state-owned energy company Eskom, but the shortage of large industrial energy supply situation will continue for several years.

At the same time some companies are or plan to establish a free energy supply,barium titanate supplier, such as the International Ferro Metals's power plants provide 10% of the electricity demand, Asia's growing demand has not brought the South African ferrochrome ferrochromium imports soared,barium titanate density, but the chrome ore imports soared.

If ferrochrome prices climbed to another level, the situation will become better.
Source: http://www.mhcocm.com