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IFM posts 21% drop in sales

Ferro Metals
Johannesburg, South Africa — MININGREVIEW.COM — 16 November 2010 – International Ferro Metals (IFM) “’ an integrated ferrochrome producer listed on the London Stock Exchange, headquartered in Sydney, and producing in South Africa “’ has posted a 21% fall in third-quarter sales, hurt by seasonally weak demand in its key markets, but forecasts a revival in demand for ferrochrome with global stainless steel production expected to rise in 2011.

In a statement issued here, the company said global stainless steel production was expected to rise to 33Mt next year from about 30.8Mt expected in 2010. Global stainless steel production rose more than 40% in the first half of 2010 on the back of strong restocking as the global economy slowly recovered after recession.

“The third quarter is traditionally a weak time of year for ferrochrome demand and this year was no exception. However, since the end of the quarter we have begun to see a strengthening of demand, particularly from China,” said chief executive David Kovarsky.

For the third quarter, company ferrochrome sales fell 21% to 28 891t from the year-ago. As of 31 October, inventories stood at 31 324t, down about 27% from 30 September. Production rose 46% to 53 785t from last year.