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Energy crisis in South Africa to affect ferrochrome and metal prices


Sahit Muja President and CEO, Albanian Minerals

01.12.2014 06:58:19 - The price of ferrochrome and chrome ore is expected to go up 10% in 2015

(live-PR.com) - South Africa is heading for its worst electricity problems in five years, this is a big threat to metal industry, chrome ore, ferrochrome platinum and gold production. Indian chrome ore production has drops by more than 50% in 2014 as some chrome mines remain closed in Odisha. India and Turkey's chrome ore reserves has been dramatically depleted and they will

 

be not capable to meet long term domestic demand.

Chrome ore production in Turkey has dropped 20% in 2014. Huge drop in chrome ore production is reported in Pakistan, Oman, Albania and Zimbabwe do to huge drop in chrome ore prices by China through 2014.

South Africa and Zimbabwe the main supplier of chrome ore in China are on the full blown energy crisis and rising cost of chrome ore minings. Miners are so underpaid in South Africa that 2015 is going to be enormous challenges in mining industry.

South Africa's DA parliamentary leader Mmusi Maimane told the House there was “a full-blown energy crisis”. African Christian Democratic Party leader said: “There is a serious crisis at Eskom.”
Inkatha Freedom Party MP Albert Mncwango described what was happening with Eskom as “a crisis of epic proportions”.
Their concerns were voiced as South Africans brace for another weekend of possible power cuts.

Earlier this week, Brown said South Africans needed to prepare themselves for tough measures needed to make the power supply sustainable.

Eskom this week warned the country may face another weekend of constrained power supply, and more possible power cuts.

The power supplier has previously explained that so-called load-shedding is necessary to protect blackout, which, if it occurred, could take weeks to rectify.

Speaking in the debate, Brown said things were going to get tough.
“The bad news is, that it is going to be very tough for about two years longer, and patience will be needed on the part of all citizens.”

Ferrochrome and chrome ore price is up in global markets today as stainless steel makers has run down their ferrochrome stockpiles. Also Chinese ferrochrome companies has run down is chrome ore stockpiles.
China accounts for 40% of global ferrochrome production followed by South Africa with 35 % in 2014. China itself has no chrome ore reserves to produce ferrochrome, which is an essential ingredient of stainless steel.

China has increased its production of Stainless Steel in the last 10 years and in 2014 accounts for more than 50 percent of total global stainless steel production.
China is going to face a huge demand for chrome ore in 2015, because China has exported 25% last chrome ore in 2014. The chrome ore mining industry will be in a big turmoil in 2015.

China has drop the price of chrome ore the key stainless steel ingredient to lowest levels since global economic crisis in 2008. This market manipulation has put out of the business hundreds of chrome ore mining companies worldwide. In the long run this will damage China.
Prices of chrome ore and other metals are expected to rebound from the current low levels . IMF expects steady economic growth in the European Union, U.S., India and China to further support the consumption metals going forward in 2015.

Albanian Minerals President and CEO Sahit Muja said, "China desperately needed chrome ore supply. For many years price of chrome ore is manipulated by China. China's exports and production of steel products has increased to highest levels ever.
South Africa's London-listed integrated ferrochrome producer, International Ferro Metals, said that it has temporarily suspended production at its two ferrochrome furnaces .
Also chrome ore and ferrochrome producing Zimbabwe continues to face huge budget crisis, power shortages as it has a peak demand of about 2 200MW against an average generation capacity of about 1 300MW, forcing the country to import power and resort to load-shedding. Imports are surging".

Sahit Muja added that ; The price of ferrochrome and chrome ore is expected to go up, South Africa , Turkey, Zimbabwe, India, Albania, Oman, Iran and Pakistan are the largest exporter of raw chromite ore, chrome ore to China. South Africa holds by far the world’s largest chrome ore reserves reserves followed by Zimbabwe, Kazakhstan, Albania, India, Turkey, Finland, Oman, Russia, Iran and Pakistan.
The price of ferrochrome and chrome ore is expected to go up 10% in 2015. Stainless steel's resistance to corrosion and staining is the building block of new developed world".

Stainless steel is 100% recyclable. In fact, over 50% of new stainless steel is made from remelted scrap metal, rendering it a somewhat eco-friendly material.Stainless steel is it is an alloy with a chromium and nickel .

Chrome ore is one of the most important and indispensable industrial metals because of its hardness and resistance to corrosion. Chromium in superalloys permits jet engines to operate in a high-temperature, high-stress, chemically oxidization.
Stainless steel is used in thousands of applications. In cutlery, sinks, saucepans, washing machine drums, microwave oven liners, razor blades, cladding, handrails, door and window fittings, street furniture, structural sections, reinforcement bar, lighting columns, lintels, masonry supports, exhaust systems, car trim/grilles, road tankers, ship containers, ships chemical tankers, refuse vehicle. pressure vessels, process piping. Oil and Gas platform accommodation, cable trays, subsea pipelines. Medical, Surgical instruments, surgical implants, MRI scanners.Food and Drink – Catering equipment, brewing, distilling, food processing. Water and sewage treatment, water tubing, hot water tanks.


Press Information:
Albanian Minerals



Contact Person:
Diana Green

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Web: http://www.albanianminerals.com



 

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