Sahit Muja: Ferrochrome production is falling due to reduced operating capacity, higher energy costs and labor problems. Ferrochrome producers worldwide settled benchmark price at USD 1.15 to USD 120 per pound.
Albanian Minerals expects that steel ingredient ferrochrome will test new high prices in 2012 as production fails to keep pace with a jump in global demand for steel.
The current stockpiles of ferrochrome in China, Europe, US, Japan, and Russia are too low to fill the gap.
Demand for ferrochrome, which is used in stainless steel to prevent corrosion, is recovering after jump in demand for steel.
Albanian Minerals expects ferrochrome prices to trade higher in 2012 on upward demand from rising growth in stainless steel production.
Also restricted supply of electricity in South Africa and China has resulted in the postponement of a number of planned ferrochrome projects over the next five years.
Rising prices of oil and coal is affecting prices for steel, iron ore, ferrochrome and chrome ore for production and transportation.
Chrome ore prices are expected to rise as big winter have affected chrome ore mining in Albania, Turkey, India , South Africa, Pakistan, Iran, Russia and Kazakhstan.
Prices of steel and ferrochrome will go up due to jump in demand in China, India, Turkey, US, Europe, Brazil and Germany .
Albanian Minerals expect steel prices to rise by 10% in 2012. The rise in oil, coal, raw material and freight rates generally drive metal prices upwards.
Albanian Minerals expected that steel prices will rise and demand will resumes through this year, iron ore, chrome ore and ferrochrome prices will increase in 2012.
Sahit Muja
President and CEO
Albanian Minerals
New York
