Switzerland-headquartered international commodities producer and trader Glencore, which operates a chrome joint venture with South Africa’s Merafe Resources, has announced its ferrochrome production results for 2019.
In the full year, Glencore’s 79.5 percent share of attributable ferrochrome production totaled 1.438 million mt of ferrochrome, down nine percent year on year. The decrease was mainly due to additional maintenance in the third quarter during periods of high energy costs and low sales prices.
In January this year, the company commenced a restructuring process at the Rustenburg smelter amid deteriorating operating and sluggish market conditions across the South African ferrochrome industry, as SteelOrbis reported previously. In April last year, the tariffs of South African electricity provider Eskom rose by 13.87 percent as a part of a 23 percent increase over the last three years. Meanwhile, the prices for ferrochrome (50%Cr) dropped by 14 percent last year to $0.77/lb CIF China, Glencore reports.
In such circumstances, Glencore’s guidance for 2020 is 1.34 million mt of ferrochrome production if the smelter is in operation throughout the full year.