International Ferro Metals posted a 21% fall in third quarter sales, hurt by seasonally weak demand in its key markets, but forecast a revival in demand for ferrochrome with global stainless steel production expected to rise in 2011.

The South African firm that produces ferrochrome FECRO-HC-RU FECRO-LC-RU used in stainless steel to prevent corrosion said that global stainless steel production is expected to rise to 33 million tonnes from about 30.8 million tonnes expected in 2010.

Global stainless steel production rose more than 40% in the first half of 2010 on the back of strong restocking as the global economy slowly recovered after recession.

For the third quarter, ferrochrome sales for the company fell by 21% to 28,891 tonnes from the year ago period. As of October 31, inventories stood at 31,324 tonnes down about 27% from September 30.

Mr David Kovarsky CEO said that "The third quarter is traditionally a weak time of year for ferrochrome demand and this year was no exception. However, since the end of the quarter we have begun to see a strengthening of demand, particularly from China.”

(Sourced from Reuters)