Metal Biz reported that Europe Asia Natural Resource Company must increase its chrome ore production by around 50% or satisfy China's stainless steel producing demand.

Mr Mark Midgley director of ENRC operating and selling departments said in the international ferroalloy meeting that currently ferrochrome manufacturers in South Africa are suffering the restriction of the increasing electricity cost and therefore ferrochrome price still stays at the high level in the long time of period.

Mr Midgley said that in the upcoming 11 years, the stainless steel production is expected to double, and hence the chrome output or demand is predicted to rise by nearly 50%. China is the world's largest stainless steel producer.

International Chromium Development Association's data showed that the international chrome ore yield in 2008 was 24 million tonnes. It is expected that above 90% of international chrome ore production will be smelted into ferrochrome alloy.

The current ferrochrome is traded at around USD 0.88 cents per pound, while the price in April 2008 was USD 2.50 per pound.

(Sourced from MetalBiz)