Global ferrochrome market to be in 11,000-mt deficit in 2015: Yildirim

Tokyo (Platts)--25Feb2015/1011 am EST/1511 GMT

The global ferrochrome market will be in a deficit of 150,000 mt, as demand from the stainless steel sector outgrows production, Turkey's Yildirim Group said Wednesday.

Yildirim's subsidiary, ETI Krom, is the world's second-largest high-carbon ferrochrome producer, according to the group's website.

Global charge chrome and high carbon ferrochrome production in 2015 is expected to rise by 4% from 2014 to 11.69 million mt in total, slowing from the previous year's 8.8% growth, Yildirim said in a research report.

Production in 2014 was 11.23 million mt, it added.

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China's production fell by 330,000 mt in the second half of 2014 from the fist half, triggered by slowing demand from the steel sector. China's production as a result was 4.4 million mt in 2014, up 10% from 2013. In 2015, China is expected to produce 4.5 million mt, up 2%, Yildirim said.

Production outside of China is seen at 7.2 million mt in 2015, up 5.2% from 2014.

India's output is expected to increase by 10% to 1 million mt in 2015 due to improvements in domestic market conditions.

South African production is seen at 3.65 million mt, up by 1% as only Glencore's Lion II smelter is expected to raise output. Kazakh production is seen rising by 9% to 1.18 million mt.

Meanwhile, Yildirim forecast 2015 consumption to be 11.84 million mt, up 6% from 11.15 million mt in 2014 on 5.7% growth in global stainless steel production.

In 2014, the market had a surplus of 80,000 mt. In 2015, on the basis of 11.69 million mt of production and 11.84 million mt of consumption, the market will be in a deficit of 150,000 mt, Yildirim forecast.

--Mayumi Watanabe, mayumi.watanabe@platts.com
--Edited by Jason Lindquist, jason.lindquist@platts.com

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