Merafe-Xstrata JV to up ferrochrome output to 85 pct
September 1, 2009

Merafe Resources would increase output at its chrome joint venture with Xstrata to 85 percent up from 60 percent from today in response to rising demand, the company announced.

The company had suspended 80 percent of the venture's capacity due to weaker ferrochrome prices on the back of the global economic slowdown and weaker demand for ferrochrome, an alloy used in stainless steel to prevent corrosion, but raised output to 60 percent in July.

Merafe said it would continue to monitor the market to adjust supply with demand.

"Ferrochrome demand is being monitored on a continuous basis and capacity utilisation will be adjusted in line with such variations in demand," it said in a statement.

Most local producers as well as the global ferrochrome industry have slashed output by around two-thirds earlier this year in response to lower demand. - Reuters