Albanian Minerals: Big jump is expected in steel and ferrochrom prices in 2011. Ferrochrome producers settled the fourth quarter European benchmark price at $1,30/lb. Demand for ferrochrome is recovering in the final quarter of 2010 and in 2011 demand for ferrochrom 2011 ro grow at 10 persent, driven by continued global economic growth coupled with the lack of any new ferrochrome capacity coming in the future.
Steel ingredient ferrochrome will test new high prices within the next year as production fails to keep pace with a jump in global demand for steel. The current stockpiles of Ferrochrome in China , Europe , Japan, US and Russia are too low to fill the gap. Prices chrome ore and ferrochrome will rise about 25 – 30 percent in the 2011.
The outlook for the ferrochrome metal used in stainless steel to prevent corrosion is further enhanced by rising output costs in top producer South Africa due to a strong rand, higher power costs, labor and transportation problems. Rising prices of oil and coal is effecting chrome ore production and transportation . Chrome ore prices are expected to rise as winter will effect mining in Albania, Turkey, India and Russia and Kazakhstan.
Prices of steel and ferrochrome will go up due to jump in global demand and the Chinese government’s power rationing policy to meet its energy saving target, which began at the beginning of September.
Growth in industrial activities in China, Japan, India, Russia, Turkey Brazil and Germany is good news for the ferrochrome, chrome ore and iron ore sector. This is also evident from the increase in steel production from the lows of last year.
President of Albanian Minerals in NY and Bytyci SHPK Tropoje, Albania said that “Globally, the demand for ferrochrome, iron ore, chrome ore has improved partly due to recovery in industrial activities worldwide and the inventories of ferrochrome, iron ore and chrome ore were depleted and companies are once again buying to build their inventories”.
Steel demand is forecast to rise about 10% this year and 15% in 2011. A steady increase in steel consumption is predicted for 2011- 2015. Prices of ferrochrome, iron ore and chrome ore, are forecast to advance in 2011 by 25 – 30 percent .
President & CEO