Ferrochrome price announcement for the fourth quarter of 2022
Merafe Ferrochrome has advised that the European benchmark ferrochrome price for the fourth quarter of 2022 has been settled at 149 US cents per pound, a 17.2% decrease from the third quarter of 2022.
Merafe Ferrochrome has a 20.5% participation through our wholly-owned subsidiary, Merafe Ferrochrome, in the earnings before interest, tax, depreciation and amortisation (EBITDA) of the Venture in which Glencore Operations South Africa Proprietary Limited (Glencore) has a 79.5% participation.
Merafe and Glencore Operations South Africa Proprietary Limited (Glencore) formed the Venture in July 2004 when we pooled our chrome operations to create the largest ferrochrome producer in the world.
90% of the ferrochrome produced is used in stainless steel and specialty steels. Global Stainless steel production increased from 51.5 million tonnes in 2020 to 58.9 million tonnes in 2021.
Challenges faced by South African ferrochrome producers
- Increasing production costs; electricity and labour
- Socio-political challenges
- Legislative uncertainty
- Commodity prices and demand
- Chrome ore exports
- Electricity supply
- Logistics
