Ferro Chrome

We often look to nickel to judge the direction of the stainless market. Likewise, when looking at nickel, almost always refer to the stainless market to discern direction. The two are inextricably linked within our view of the high end of the steel market, but in practice, more stainless is produced with purely chrome alloying [...]

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As with many of the ferro alloys, ferro chrome (FeCr) is at least in part a power play. Electricity makes up a significant percentage of the final product cost but so do coal prices, or to be precise, coking coal prices. Coking coal and electricity are required to reduce a chrome ore, generally chromite (an [...]

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The debate about adding ferro-chrome as an LME contract is not as far fetched as it may first sound. As Roskill advises, the stainless steel industry is by far the largest consumer of ferro-chrome. The industry is dominated by just three countries of supply – South Africa, Kazakhstan and India, with South Africa by far [...]

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Near bankrupt Eskom, state owned producer of over 95% of the electricity in South Africa has won agreement to increase power prices over the next three years. Although Eskom was seeking a 35%per annum increase, the firm has secured agreement for rate hikes of 24.8% in 2010, 25.8% in 2011 and 25.9% in 2012. Compounded [...]

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With both global prices and sales of steel steaming away over the last twelve months, the sometimes overlooked stainless market has been quietly contracting. The market contracted by 2.9% in terms of production last year to 27.6 million tons according to the International Stainless Forum. But the reasons for the decline – a sharp fall [...]

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The papers are all worrying about the power shortages being experienced in South Africa and reporting with various levels of alarm the likely impact on the price of precious metals, base metals, Ferro alloys and the stock of companies producing these materials. The reality is the recent outages in South Africa were a disaster waiting [...]

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