| Abstract: | In 1990, South Africa accounted for 43% of the 2 405 000t of ferrochrome produced worldwide. Even though world production has been very close to that level for more than five years, there is still approximately 1 million tlyear of excess capacity in the world today. Despite that huge overhang, when capacity closures are deducted from capacity additions, there was a net increase in capacity of approximately 450 000 t/year during the period 1989–91. Some of this additional capacity is intended to serve a domestic market and some to take advantage of very low production costs. Nevertheless, with so much excess capacity, the price of ferrochrome will remain under pressure for some time to come. |
