Ferro-chrome production cuts are likely due to today's low pricing environment, prompting a rebound in the market when supply surpluses shrink, Merafe Resources said on Monday August 5.
The South African chrome producer, which runs a joint venture project with trader-miner Glencore, said price and exchange rate volatility are expected to continue to affect the market while global uncertainty will continue to hit economies. "Given the state of the market, there are likely to be ferro-chrome production cuts across key markets. Surpluses are expected to narrow as a result with some improvement in prices expected," Merafe said. A number of South African ferro-chrome producers have already announced cuts or lower production guidance. Glencore...