International ferro metals feels drop in sales, sees price rise

20th Apr 2011 14:55

Integrated ferrochrome producer, International Ferro Metals, has today published its production report for the three months until the 31st of March 2011. The producer has announced a 9% increase in its ferrochrome production for the quarter, to 51,446 tonnes. In comparison with the same time a year ago its production fell by 5%, due to furnace roof leaks in advance of the rectification and upgrade planned for June to August 2011.Its sales fell 35% on quarter and 24% on year, due to unusually high stockpile liquidation in those periods. During the period in question its net borrowings were reduced slightly, to ZAR213m from ZAR216m.Of particular interest, for the second quarter of this year the company has stated that the benchmark European FeCr price increased by 10¢/lb, to US$1.35/lb.Lastly, the firm describes it cost reduction programme as "on-going" and "successful", having achieved a 10% reduction in Rand production costs, when compared to the preceding half year.Shares of International Ferro Metals closed down today, by 0.9%, at 26.75p. ab