Reuters reported that South Africa's International Ferro Metals Limited’s Q1 production doubled from the previous quarter helped by the start up of its second furnace.

The company however, said that ferrochrome production fell 38% compared with the same period of 1008 when both its furnaces were running at full capacity.

International Ferro Metals said that it remained cautious in the near term due to low visibility in demand from developing countries and uncertain outlook for the rand and electricity costs. The company said that ferrochrome price increased to USD 1.03 per pound in the December quarter from USD 0.89 per pound in the preceding quarter.

International Ferro, which had net cash of ZAR 433 million at end September said that total capital expenditure budgeted for the remainder of the financial year was ZAR 350 million.

Mr David Kovarsky CEO of IFL said in a statement that "With the prospect of continued ferrochrome price increases through 2010, IFL is well placed to take full advantage of its strategic access to growth in stainless steel production."

(Sourced from Reuters)