* Strikes cut UG2 ore output by 150,000-250,000 T – traders
* Reduced output stems four-month ferrochrome price decline
* Longer-term plans to produce more UG2 chrome ore
By Harpreet Bhal and Silvia Antonioli
LONDON, Sept 26 (Reuters) – The impact of South African mine
labour unrest has spread beyond precious metals to UG2 chrome
ore, a by product of platinum and key ingredient in stainless
steel, with output cuts putting a floor under prices after four
months of decline.
In recent months, violent labour unrest over pay has
disrupted production at some of the largest South African
platinum mines, including those owned by Anglo American Platinum
, Lonmin and Aquarius Platinum.
South Africa accounts for more than 80 percent of global
platinum supply, but it also produces over half of the world’s
chrome. Both markets are in global surplus, but uncertainty
created by production cuts has induced fresh buying.
Although disputes at some south African shafts have been
resolved, strikes are in full force at others and continuing to
spread, raising worries that prolonged disruptions might hit
production further.
So far strikes have cut output of UG2 chrome ore by about
150,000-250,000 tonnes, market players said, a significant
enough amount to have an effect on prices, even in an over
supplied market.
Continued…
