What this report gives you:
- Independent, in-depth research and analysis
- Essential market intelligence for successful business planning
- Detailed survey of production in 46 countries
- Up-to-date profiles of over 50 producing and processing companies and their activities, including Samancor Chrome, Xstrata SA Chrome Venture, Elementis Chromium and Kazkhrom
- Forecasts for end-use consumption & world supply & demand
A valuable resource for:
- Chief executives
- Strategic planners
- Market researchers
- Financial analysts
- Information centres
- Product developers
The combination of strong demand, tight supply and sharp rises in the costs of freight, energy and chromite raw materials, meant ferro-chrome prices reached their highest levels for ten years in early 2005, at US72-74/lb. This represents a significant recovery from early 2002 when prices of US27-29lb were at their lowest level for 30 years and some 1.3Mtpy ferro-chrome capacity was idled. Recovery in the ferro-chrome market was primarily due to growth in stainless steel production, which is forecast to maintain strong growth through the mid-2000s, led by Asian demand. Chinese output is estimated to rise from 1.8Mt in 2003 to at least 6Mt in 2008, with growth concentrated in the next two to three years.
However, recent high prices and expectations of continued growth in demand have encouraged plans for significant capacity expansion. Commissioning of all proposed capacity would result in the ferro-chrome market moving into surplus until the end of the decade, exerting downward pressure on prices. The cyclical nature of the ferro-chrome market has resulted in a high degree of vertical integration between chromite mining and ferro-chrome production, and concentration of production among relatively few countries and producers. The increasing vertical integration has put severe pressure on non-integrated producers in times of low ferro-chrome prices.
The key trends, issues and developments in the market are now analysed in this major new report from Roskill. It provides a clear insight into all areas of the industry and an authoritative analysis of the prospects for the future.
Report Highlights
The formation of a joint venture between Xstrata Alloys and SA Chrome in early 2004 created the world s largest ferro-chrome producer. The Xstrata-SA Chrome Venture, Samancor Chrome of South Africa, and Kazkrom of Kazakhstan are the leading producers of chromite and ferro-chrome, accounting for nearly 55% of world output of both products.
The countries with the greatest potential to increase production are South Africa and Kazakhstan, thereby leading to further concentration of the chromite and ferro-chrome supply. The largest expansion planned by the Xstrata-SA Chrome Venture, could potentially increase total ferro-chrome capacity to 2.55Mtpy by the end of 2010.
In Kazakhstan, Kazkhrom plans to raise chromite capacity by 400,000tpy during 2005 through the commissioning of the worlds largest pelletising plant. In the long term, Kazkrom may become forwardly integrated into stainless steel production, aimed at meeting Chinese and Russian demand.
Market economy demand for
chromium chemicals is estimated to have fallen by 3% in 2003, and a similar rate of decline seems likely to continue through the mid 2000s. Increasing concerns over environmental and health risks associated with hexavalent chromium have resulted in restrictions on the consumption of chromium chemicals in wood preservation, pigments, leather tanning and metal surface treatments.
The outlook for the chromium metal market is for increasing growth over the next five years, reflecting the upturn in the aerospace and industrial gas turbine markets. Consumption is estimated to have risen by 15% in 2004, and could increase by a further 25% to 25,000tpy in the late 2000s.
Sources and Methodology
This report is the result of an extensive programme of research by Roskill analysts. They have conducted a close appraisal of information from a wide variety of sources, including governments, trade associations, company sources, official organisations, trade journals and technical literature.
Information gathering is only the first step in preparing a report. The data is then extensively analysed so that the finished report provides a comprehensive insight into the industry today, as well as top-level analysis of the long-term prospects.
Authoritative research in this report can help you:
- Explore commercial opportunities
- Gather intelligence on your competitors
- Strengthen your business capabilities
- Plan your materials buying & sourcing
- Assess key trends and growth areas
- Establish sales targets for your products
- Analyse company market share
- Save time searching for specialist information
- And improve your results
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