South African major ferro-chrome suppliers were reported to cut the ferro-chrome output in the Q2 due to weak demand and depreciation of US dollars which have continued to effect the market’s consumption from buyers.

At present, the prices of European high carbon ferro-chrome are at US$1.19/lb CIF; however, Asian mills’ purchase prices are at US$1.03/lb. CIF.

According to saying of Xstrata, the company’s ferro-chrome production is recently offered to export market as the ferro-chrome prices have remained weak in South African market.

The company said that the ferro-chrome production cut in the overseas large-scale manufacturers may bring the benefits to South African mills; however, it wouldn’t support South African sluggish market due to high inventory and weak performance of stainless steel market.

Affected by these factors, South African ferro-chrome mills have been considering reducing the production.

It’s said that Xstrata-Merafe chrome joint venture will postpone six furnaces in June, shutdown eleven furnaces in July and close nine furnaces in August.