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China to have a limited chrome ore supply - Report

Steel News - Published on Wed, 04 May 2011

The government of Zimbabwe has banned all chrome ore exports. Zimbabwe exported 600,000 tonnes of chrome in 2010.

India, Turkey, Albania and Kazakhstan is increasing the capacity of ferrochrome production. There will be limited chrome ore supply available in the markets.

Steel demand in China, the world\'s top producer of steel will grow at a 6% in next two years to 605 million tonnes in 2011 and 635 million tonnes in 2012.

Due to the high cost many miners strive to maintain the existing chrome ore production capacity. Devaluation of dollar, labor costs plus the cost oil led to a substantial increase in costs of chrome ore production.

Chrome ore mining in, South Africa, Kazakhstan, India, Zimbabwe, Turkey, Oman, Pakistan, Iran and Albania have become very expensive do to higher oil prices. The production of chrome ore will be decreased further and there will be limited chrome ore supply available in the market in Q4 2011 and 2012.

Due to the increases in the production and transportation costs, Albanian Minerals & Bytyci SHPK has decided to revise its chrome ore prices for Q3 and Q4 2011 accordingly. Albanian Minerals has increased 15% chrome ore prices for Q3 2011 and 20% for Q4 2011.

Chrome ore is used in stainless steel, imparting it with a high resistance to corrosion and its shiny appearance. 90% of the chrome ore mined worldwide is converted to ferrochrome, which is used in the production of stainless steel.

(Sourced from www.businessweek.com)

Posted By : admin on Wed, 04 May 2011
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