JOHANNESBURG (miningweekly.com) − London-listed International Ferro Metals (IFM) said on Wednesday that it had increased its second-quarter ferrochrome output by 9% to 51 446 t from the pervious quarter.

However, production was still 5% lower than the corresponding period last year, owing to some roof leaks experienced during the quarter.

Sales of 48 420 t was 35% lower than the previous quarter, owing to high stockpile liquidation.

CEO David Kovarsky said that the ferrochrome and chrome ore markets had remained soft during the March quarter, but envisaged that with the rebuild of Japan’s north east part of the country and China entering into a twelfth five-year plan, ferrochrome prices would be underpinned in the medium and long term.

Benchmark European ferrochrome prices increased by $0,10 to $1,35/lb for the June 2011 quarter, but would be offset by higher winter electricity tariffs in South Africa.

“However, the company’s success in reducing costs this quarter by about 10% combined with the future expected cost savings from improved electricity efficiencies, electricity cogeneration, nameplate production volumes being achieved once the furnace roofs have been rebuilt, and cheaper UG2 ore, should position IFM below the median on the South African cost curve.”

IFM said that it observed healthy demand from Europe, North America and non Chinese Asian markets, which has been a strong focus area for the company in recent times.

During the quarter, the company’s sales to Europe and North America exceeded sales to Asia, with about 28 000 t sold to those markets, and about 20 000 t sold to Asia, mostly to Taiwan.
 

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.