On July 19, International Ferro Metals, South African producer of ferrochrome (an essential ingredient in stainless steel issued production), released its production results for the three months up to July 30 2011.
The company produced 42,584 mt of ferrochrome during the period in question, down 17 percent both the corresponding of 2010 and previous quarters, due to scheduled shut down of a furnace on 1 June 2011 for roof upgrade.
Ferrochrome sales volumes were down 28 percent from the previous quarter and down 37 percent from the corresponding period of last year, due to softer demand and amounted 34,735 mt for the three months in question.
International Ferro Metals's ferrochrome inventory was 25,276 mt on June 30, up from the recorded 17,513 mt in the previous quarter and 17,976 in the corresponding period last year.
Net cash balance was ZAR 248 million (35.62 million $) on June 30 this year, up from a net cash balance of ZAR 213 million (30.60 million $) on March 31, 2011.
Commenting on the update, Chief Executive David Kovarsky said: "Industry experts are forecasting a record year for stainless steel production in 2011 and again in 2012, however the third quarter is traditionally weak and we have seen this in lower benchmark prices and reduced output of ferrochrome from the South African producers. IFL's objective is to significantly reduce its costs, moving it to be among the lower cost South African producers."