Chronicle Editor
Munyaradzi Musiiwa, Midlands Correspondent
LOCAL ferrochrome producers are starting to feel the heat of plummeting global chrome prices that are likely to affect their viability.
According to the producers, global markets for ferrochrome and chrome ore have taken a downturn and 2019 is forecast to have depressed market conditions largely due to some imbalance in supply versus demand as well as uncertainties associated with global trade wars and changing economic dynamics of the key stainless steel producing countries.
The local producers have also accused big international players of suffocating African economies by dropping the prices of chrome so as to frustrate developing countries. In an interview, Zimbabwe Mining and Smelting Company (Zimasco) general manager (marketing), Ms Clara Sadomba said depressed market conditions were adversely affecting production at the country’s major ferrochrome and chrome ore producers. However, she said Zimasco which is operating at 80 percent capacity was making significant strides to stay afloat in the wake of plummeting global ferrochrome and chrome ore prices.
“Global markets for ferrochrome and chrome ore have taken a downturn and 2019 is forecast to have depressed market conditions largely due to some imbalance in supply versus demand as well as uncertainties associated with global trade wars and changing economic dynamics of the key stainless steel producing countries. However, Zimasco is cognisant of this and will continuously endeavour to maintain its viability in this environment,” she said.
Ms Sadomba confirmed that other global competitors were using information released by local producers through the media to temper with prices.
“Due to competitors using this information incorrectly, we no longer give out these figures (target production) to the media. As Zimasco we are operating at 80 percent of our operational capacity,” she said.
The Kwekwe-based chrome smelting company last year scaled up production and met its target production of extracting 560 000 tonnes of chrome ore and producing 120 000 tonnes of ferrochrome.
In 2017 the company produced 350 000 tonnes of chrome ore and 100 000 tonnes of ferrochrome.
Zimasco rose from a debt overhang that had buried the group for years and went under judicial management, and made efforts towards liquidating debt owed to various creditors after coming up with a scheme of arrangement. It was removed from judicial management last year.
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