HomeBase MetalsMerafe ferrochrome output drops 47%

Merafe ferrochrome output drops 47%

Merafe Resources
“’ production in joint
venture with Xstrata
down 47%
Johannesburg, South Africa — MININGREVIEW.COM — 20 October 2009 – South African ferrochrome producer Merafe Resources reports that output at its joint venture with Xstrata fell 47% between January and September 2009, compared with the same period last year.

In a statement issued here, Merafe revealed that ferrochrome production at the venture had dropped to 126 000 tonnes during the period due to the suspension of up to 80% of production capacity earlier this year, following a slump in demand. The company added that furnace production had been restored to 85% of total capacity after a rebound in demand.

Ferrochrome producers in South Africa “’ the world’s biggest producer “’ as well as the global ferrochrome industry, have slashed output by around two-thirds this year in response to lower demand resulting from the economic downturn.

Merafe said earlier this month that the European benchmark ferrochrome price had been settled at US$1.03 per pound for the fourth quarter of 2009, up 16% from the third quarter price of US$0.89 per pound.