JOHANNESBURG (miningweekly.com) – The European benchmark ferrochrome price has been settled at $1.14/lb for the second quarter of 2020, Merafe Resources advised shareholders on Wednesday.

This latest European benchmark price is an increase of 12.9% on the $1.01/lb price in the first quarter of 2020, the JSE-listed company said in a stock exchange news service announcement.

Mining Weekly can report that China imported approximately 79% of its chrome ore in 2019, from South Africa, compared with 76% in 2018.

Ninety per cent of the ferrochrome produced is used in stainless steel and specialty steels.

Stainless steel production grew from 51.4-million tonnes in 2018 to 51.9-million tonnes in 2019.

Approximately 3.6-million tonnes of the world's ferrochrome production of 14-million tonnes was supplied by South Africa in 2019, Merafe states on its website, where it adds that more than 72% of the world's chrome reserves are in South Africa.

The South African chrome industry provides approximately 200 000 direct and indirect jobs.

The focus of Merafe, headed by CEO Zanele Matlala, is on the 20.5% participation of its wholly owned subsidiary, Merafe Ferrochrome and Mining, in the earnings before interest, taxes, depreciation and amortisation of the Glencore-Merafe Chrome Venture, in which Glencore has a 79.5% participation.