According to Albanian Minerals President and CEO Sahit Muja, A sharp fall on the nickel output can be expected in 2015 due to the depletion of reserves in Indonesian and limited new reserves open to markets globally.
The global nickel supply will have a significant deficit in 2015. Nickel and alloys are used extensively because of their corrosion resistance, high temperature strength and their special magnetic and thermal expansion properties.
The major alloy types that are used are: Iron-Nickel-Chromium alloys, Stainless Steels, Copper-Nickel alloys and Nickel-Copper alloys Nickel-Chromium and Nickel-Chromium-Iron alloys.
Mr. Muja said, there is a potential for a sharp rise in nickel and chrome ore prices in 2015 because a significant portion of Chinese primary demand has been met by destocking in reserves.
"China no longer can manipulate with Nickel and chrome ore prices". Sahit Muja said. China is the world's number one producer of stainless steel. China has no reserves of chrome ore . China overtook the ferro-chrome production leader South Africa as the world’s largest producer. China need to export all it's chrome ore.
Albanian Minerals President and CEO Sahit Muja said, “The Chrome ore and ferro-chrome suppliers are likely to raised their offer prices to the global market. High labor costs and energy prices are impacting ferro-chrome production across the globe.
The price of ferro-chrome is up in U.S, EU, Japan and India. Depletion of high grades of nickel and chrome ore now set the stage for sharper increases in the costs for mining and transportation .
Low-carbon ferrochrome prices have strengthened, in U.S. amid reports of tightening domestic supply" .
Sahit Muja said, “Global demand and prices for nickel, chrome ore, ferro-chrome, a key ingredient for making stainless steel, to continue to increase in 2015.
The Chinese steel industry has a record steel output in 2014 to meet soaring demand from infrastructure and social housing projects. Strong economic growth and urbanization in China, India, U.S. Africa, and other nations are expected to create growing demand for steel in 2015 .
Albanian Minerals CEO Sahit Muja said, “The chrome ore and ferro-chrome prices will increase in 2015 do to strong demand, high costs of production. Also chrome ore shortage is expected as many chrome ore companies has to stop mining chrome ore do to the winter conditions, this will affect the global chrome ore production”.
Mr. Muja added that, The concern over the depleting reserves of chrome ore in India, Africa, Albania, Pakistan, Oman and Turkey, may drive prices of ferro-chrome and chrome ore up in 2015.
Ferro-chrome production for metallurgical applications uses more than 90% of the world’s chrome ore.
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