Merafe’s attributable ferrochrome production from the Glencore Merafe Resources Venture fell 8.8pc to 371kt (371,000mt) in 2019.
The South African company attributed the decline to increasing electricity curtailments from Eskom, community unrest in the region, and production cutbacks due to market conditions.The venture operated at 77pc of installed capacity during the year compared with 85pc of installed capacity in 2018.
The company’s Q4 2019 production declined 6.3pc to 105kt compared to the same quarter in 2018, but was higher than production in Q3 2019 which by 28.9pc to 60kt due to community unrest, tight market conditions, and planned maintenance.
Merafe has seen a consistent decrease in its ferrochrome pricing over the past three quarters. In September 2019, the company had announed that its European benchmark ferrochrome price was settled at $1.02/lb for Q4 2019, a decrease of 1.9pc from the previous 2019 quarter. In June 2019, the company had advised that the European benchmark ferrochrome price has been settled at $1.04/lb for Q3 2019, down 13.3pc from $1.20/lb in Q2 2019.