Tokyo — The global ferrochrome market will be in a deficit of 150,000 mt, as demand from the stainless steel sector outgrows production, Turkey's Yildirim Group said Wednesday.
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Yildirim's subsidiary, ETI Krom, is the world's second-largest high-carbon ferrochrome producer, according to the group's website.
Global charge chrome and high carbon ferrochrome production in 2015 is expected to rise by 4% from 2014 to 11.69 million mt in total, slowing from the previous year's 8.8% growth, Yildirim said in a research report.
Production in 2014 was 11.23 million mt, it added.
China's production fell by 330,000 mt in the second half of 2014 from the fist half, triggered by slowing demand from the steel sector. China's production as a result was 4.4 million mt in 2014, up 10% from 2013. In 2015, China is expected to produce 4.5 million mt, up 2%, Yildirim said.
Production outside of China is seen at 7.2 million mt in 2015, up 5.2% from 2014.
India's output is expected to increase by 10% to 1 million mt in 2015 due to improvements in domestic market conditions.
South African production is seen at 3.65 million mt, up by 1% as only Glencore's Lion II smelter is expected to raise output. Kazakh production is seen rising by 9% to 1.18 million mt.
Meanwhile, Yildirim forecast 2015 consumption to be 11.84 million mt, up 6% from 11.15 million mt in 2014 on 5.7% growth in global stainless steel production.
In 2014, the market had a surplus of 80,000 mt. In 2015, on the basis of 11.69 million mt of production and 11.84 million mt of consumption, the market will be in a deficit of 150,000 mt, Yildirim forecast.