JOHANNESBURG (miningweekly.com) -– The continued deterioration of the stainless steel market has prompted ferrochrome producer Assmang to close another furnace, cutting output by an additional 45 000 t/y.

The producer, which is jointly owned by African Rainbow Minerals and Assore, on Monday said it would immediately shut down furnace two at the Machadodorp ferrochrome works.

The smelter would now only produce 30% of its capacity, as Assmang had shut down furnaces three and five in October.

Assmang would also commensurately adjust chrome-ore production at its Dwarsrivier chrome mine in 2009.

A number of local and international producers have cut production in the past two months, with the Xstrata/Merafe Resources joint venture (JV) closing 11 furnaces, with a combined cut of about 906 000 t/y, representing about 52% of the JV's yearly output.

Another local producer, Hernic Ferrochrome, has cut its production by about 70%, while Samancor Chrome has shut down all its mining and smelting operations until the end of February.

Meanwhile, International Ferro Metals had suspended production at its ferrochrome furnaces in South Africa.

For an up-to-date list of companies that have announced cutbacks as a result of the financial crisis and commodity-price declines click here.

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