| ENRC will buy Samancor stake from IMR — source |
| International Mineral Resources (IMR) will take a majority stake in Samancor through a buyout of Kermas’ 34.5% holding, thereby increasing its holding from 32.5% to 67%.A market source has revealed to Metal Bulletin that Eurasian Natural Resources Corp (ENRC) will subsequently acquire the share in Samancor Chrome held by IMR. The transaction will make ENRC the world’s largest ferrochromium producer by tonnage. ENRC is already the world’s leading producer by chrome content, while Samancor is the world’s second-largest producer of charge chrome after Xstrata. However, Liberum Capital analysts expressed reservations about the deal, saying that, apart from volume synergies on ferrochromium marketing, it could not see any other material benefits from the acquisition. Metal Bulletin Daily, 19 October 2009, p 1. |
Xstrata returns ferrochromium output to 85% of capacity
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| Ferrochromium production at Xstrata returned to 85% of capacity at the end of September on the back of improved demand. Third-quarter output increased by 43% on the previous quarter to 245 kt. Margins remain under pressure as the South African rand strengthened against the US dollar. Metal Bulletin Daily, 20 October 2009, p 1. |
Chromium ore holds steady in China amid thin demand
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| Chromium ore prices are holding steady as weak Chinese demand continues to offset higher producer offers from South Africa and Turkey. Chinese buyers were expected to return to the market after the national day holiday but buying remains slow and volumes are small. Deals are being concluded at $140-$150/t for South African ore, basis 40% Cr2O3. Total chromium ore imports between January and August dropped 23% year-on-year to 3.791 Mt. Metal Bulletin Daily, 20 October 2009, p 3. |
No change for Indian chromium ore export prices
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| Export prices of Indian chromium ore will remain unchanged for the remainder of the year in the hope of encouraging spot buying. Minerals & Metals Trading Corp (MMTC) has maintained the prices set on 1 September at $335/t fob for friable ore and $330/t fob for chrome concentrate. Trade sources claim that export prices are too high and, unless there is substantial buying from China, few sales can be expected. Metal Bulletin Daily, 20 October 2009, p3. |
Chinese ferrochromium import prices continue easing
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| Chinese ferrochromium import prices for India-origin material have fallen by 1c/lb to 80-83c/lb cif China as trading remains quiet after the Chinese national holiday. Prices could come under further pressure if local stainless steel mills reduce their ferrochromium requirements due to production cuts in the fourth quarter. There are also rumours that China’s largest stainless steel producer, Shanxi Taigang Stainless, will drop its tender prices for November by about 4%, bringing these to below the current spot market price. Stainless demand is expected to be weak in the fourth quarter. SBB Daily Briefing, Stainless Edition, 20 October 2009. |
Xstrata-Merafe chrome production falls 47%
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| Ferrochromium production at Xstrata-Merafe fell by 47% in the first nine months of 2009 compared with the same period in 2008, due to the suspension of 85% of production capacity in the first part of the year. The company produced 126 kt in the nine months to the end of September, down from 238 kt produced in the same period in 2008. SBB Daily Briefing, Stainless Edition, 21 October 2009. |
Ferrochromium heading for Q4 surplus, Eti Krom warns
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| Eti Krom CEO, Robert Yildirim, has urged the ferrochromium industry to enforce strict production discipline in order to avoid a surplus. He also says that Eti Krom will not increase ferrochromium output in the fourth quarter of 2009. The recent fall off in demand from China has changed sentiment in the ferrochromium market from growing optimism to widespread concern. Metal Bulletin Daily, 21 October 2009, p 3. |
