Outlook good for cash-flush Merafe

Chrome and ferrochrome company Merafe, which has zero debt and R600-million cash on hand, sees ferrochrome prices being supported by the cost of production in China, solid projected stainless steel production growth and the absence of any major additional ferrochrome supply capacity coming on stream soon. With the cost of production in China estimated to be around 93 c/lb, the ferrochrome price is not expected to fall below that level as the company moves towards the second quarter of 2018.