FeCr exports from South Africa rebound 51% MoM in April

South Africa's HC FeCr exports in April totaled 117,200 tonnes, leaping 50.8% month-on-month. Shipments to China surged 72.5% from March to 38,700 tonnes, marking a 117% on-year surge, the data show.

The significant increase was partly linked to the phased restart of Glencore Merafe Chrome Venture's Lion smelter in Steelpoort, Limpopo Province, which resumed operations in February, as reported.

However, the export volume was still down 13.4% year-on-year, the SARS figures indicate.

In a positive development, the National Electricity Regulator of South Africa has approved a Rand 0.62/kWh ($0.04/kWh) electricity tariff for the domestic ferrochrome industry, a level significantly lower than normal industrial pricing and represents a major reprieve for the smelters. The tariff concession has helped halt planned layoffs and offered hope to a sector under severe pressure, Mysteel Global notes.

South Africa's ferrochrome industry has been battling soaring electricity costs for years, with power prices rising dramatically since 2008. High costs have forced many smelters to shut down, leaving only a fraction of the country's facilities still operational, as reported.

Despite the April rebound, South Africa's January-April exports of HC FeCr slumped by 53.1% year-on-year to 416,800 tonnes, with shipments to China down by a huge 52.6% at 156,000 tonnes, the SARS statistics suggest.

Written by Tiffany Hou, houtianhui@mysteel.com

Edited by Russ McCulloch, russ.mcculloch@mysteel.com