Assmang of South Africa Expands Ferroalloy Output Reduction

Assmang, South African raw material and resource company in which Sumitomo Corporation takes an equity, announced on Wednesday the firm expands ferroalloy output reduction. The firm lowered operation rate for high carbon ferromanganese to 60% from previous 70-80%. Meanwhile, the firm will suspend ferrochrome production totally at the end of May, which already lowered the operation rate to 30%. The firm continues low production by the demand recovers though steel industry keeps wide-range output cut now. Suspension of ferrochrome production may be prolonged because stainless steel industry is largely shrinking.

As to ferrochrome, Assmang stopped 2 productive facilities among total 4 facilities at the beginning of this year. Current operation rate is 30% against 300,000 tonnes of annual capacity. The firm will suspend the other 2 facilities from the end of May to summer, when electric power charge rises. Stainless steel makers hold chrome inventory for more than a half year since they continue low production of stainless products. Consequently demand recovery should require a long time.

As to high carbon ferromanganese, Assmang stopped 2 productive facilities at the beginning of this year among total 6 facilities with 260,000-tonne annual capacity. The firm additionally suspended no.5 facility this time. The operation rate lowered to 60%.

Assmang’s subsidiary, Cato Ridge Alloys has suspended total operation of low-middle carbon ferromanganese since the beginning of this year, whose production capacity is 60,000 tonnes per year. The subsidiary continues low-middle carbon ferromanganese shipment from existent inventory.