India: Steel Prices To Rise By 15% In 2011
Albanian Minerals expect steel prices to rise by 10% - 15% in 2011. The rise in oil, coal , raw material and freight rates generally drive steel prices upwards.
Online, October 19, 2010 (Newswire.com)
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India: steel prices to rise by 15% in 2011.
Ferrochrome production is falling in South Africa due to reduced operating capacity, higher energy costs and labor problems.
South Africa is the largest producer of ferrochrome .
Ferrochrome producers in worldwide settled the third quarter European benchmark price at $1.30 per pound .
Steel ingredient ferrochrome will test new high prices within the next year as production fails to keep pace with a jump in global demand for steel. The current stockpiles of Ferrochrome in China , Europe , Japan,India, US and Russia are too low to fill the gap.
The bullish outlook for the minor metal used in stainless steel to prevent corrosion is further enhanced by rising output costs in top producer South Africa due to a strong rand, higher power costs, labor and transportation problems. Rising prices of oil and coal is effecting chrome ore production and transportation . Chrome ore prices are expected to rise as winter will effect mining in Albania, Turkey, India and Russia and Kazakhstan.
Prices of steel and ferrochrome will go up due to Jump in global demand and the Chinese government's power rationing policy to meet its energy saving target, which began at the beginning of September.
President of Albanian Minerals Mr Sahit Muja said "Albanian Minerals expect steel prices to rise by 10% - 15% in 2011 . The rise in oil, coal , raw material and freight rates generally drive steel prices upwards. Steel demand is expected to pick up toward the end of the year and into next year. Albanian Minerals expected that steel prices will rise and demand growth will resumes through next year, Chrome ore and ferro-chrome prices will l increase".
South Africa is the world's largest ferro-chrome producer and is having big problems with energy. With power supply likely to be a problem for the world's largest ferro-chrome producers, prices will definitely go up. Steel prices are totally dependable from energy and ferrchrome prices.
Source
Sahit Muja
President & CEO
Albanian Minerals
New York