In September 2010, Core Consultants addressed delegates at the Metal Bulletin Chromite Event in Johannesburg
Core Consultants was requested by our hosts, Metal Bulletin to provide delegates with our view on the prospects for chrome and ferrochrome markets. I am going to focus on the current quarter by commenting and substantiating the reasons for our outlook for the industry.
However, before we can understand the chrome and ferrochrome industry, we need to take time to consider the health of the global economy. The fortunes of the chrome and ferrochrome industries are dependent on the demand for stainless-steel intensive goods. The consumption of these goods increases amid strong economic growth, while in recessionary times, demand declines. The recent financial crisis is an extreme example of the dependency of the chrome industry on the general economy as in 2009, the average price of European ferrochrome dipped by 60% year on year.
We therefore thought it was appropriate to divide this speech into three parts, the first segment is to consider the economic outlook for Europe, Asia and the USA which we will use as a base for our outlook of the chrome market. Thereafter, we will then consider recent developments and trends in the stainless steel and ferrochrome industry and finally end off with our view on the ferrochrome and chrome market