China Replaces South Africa as Biggest Steel Feedstock Ferrochrome Producer

Reuters reported that according to Merafe Resources, during the first half of 2012 China replaced South Africa as the world’s biggest producer of steel feedstock ferrochrome by accounting for 33 percent of global production.

As quoted in the market news:

Output in South Africa, once the biggest supplier, fell 15 percent during the first half of 2012 and accounted for 32 percent of the market, Merafe said, citing a report by market research firm Heinz Pariser.

“South African ferrochrome exports to China continue to be displaced by domestic Chinese ferrochrome production on the back of unbeneficiated chrome ore exports from South Africa,” it said, partly referring to ore sent to China by South African platinum producers.

Production in Africa’s biggest economy also fell sharply after deals signed with power utility Eskom in which producers agreed to reduce output and cut their electricity consumption in return for payment.

Click here to read the full Reuters report.