Eskom wants to increase electricity prices by 15%
- This is a continues issue that plagues South Africa, despite recent price hike, Eskom still wants to increase it, 15% annually for the next 3 years
- Price hikes coupled with shortages of electricity and blackouts is one of the main reasons why big portion of South African ferrochrome capacity is either idled or operates at the low utilization rates
- On the other hand, if NERSA (National Energy Regulator of South Africa) approves these price hikes, it most likely will force ferrochrome producers to hike their prices for both ore and FeCr
TISCO lowers HC FeCr bidding price for November 2018
- TISCO was the first major stainless-steel mill to announce November prices, with the price being down 100 RMB/t (6750 RMB/t)
- This price drop can be attributed to some domestic Chinese factors:
- The upcoming environmental measures most likely will affect both ferrochrome producers and consumers. It looks like TISCO believes that stainless steel mills will have to stop production on the larger scale, thus creating an oversupply of ferrochrome
- Secondly, TISCO itself is placing some of the production lines on repairs, thus decreasing its personal demand for ferrochrome
- Current supply is more than plenty, especially since TISCO mills are surrounded by ferrochrome producers
- Most likely by the end of the next week other major stainless-steel mills will announce their bidding prices
- After those prices are released, we will see of TISCO decided to seize the market opportunity by being the first to publish new price