Merafe Resources Production declines in second half

Merafe Resources has blamed scheduled maintenance during the high winter tariff months, weak market conditions and industrial action for lower production at its ferrochrome smelters in the second half of last year. Merafe said yesterday that installed capacity utilisation declined to an average of 65 percent for the year to December, and production volumes fell 12 percent. Merafe’s joint venture with Xstrata supplies ferrochrome to Europe, America and Asia. It said that due to weaker demand for stainless steel, the European benchmark ferrochrome price for the first quarter of this year was settled at $1.15 (R8.98) a pound, a quarter-on-quarter decline of $0.05. The average benchmark price for 2011 of $1.25 a pound was at a similar level to 2010. The shares were unchanged at 91c. – Dineo Faku Source