About Us
Our Market
Stainless steel has a variety of uses ranging from cutlery or cookware, to vital components in cars, aircraft, ships and tankers, and as key parts in lifts, escalators or industrial plants. Few materials in the world market play such an important role in our daily lives as this strong, durable and corrosion resistant metal. The global demand for stainless steel is expected to grow by over 6% in the foreseeable future.
"The outlook for both stainless steel consumption and production is remarkably buoyant for the longer term, supported by strong economic growth in China and other developing economies, as well as by sustained growth in the developed nations. Chinese GDP growth peaked last year at an impressive 11.4%."
"Charge chrome prices have reached a new threshold, and will not return to the historical price levels of 35-55c/lb which characterised the pre-2003 period, or even to the 2004-2006 levels of 60-80c/lb. MBR's view is that charge chrome prices are in the midst of a short-term spike, similar to the pricing spikes that occurred in 1995 and 2004. We believe, however, that both the height and the length of the 2008/2009 price spike will far exceed those in previous market cycles. MBR is forecasting average annual prices in 2008-2009 of $2.50-3.00/lb, with spot market prices potentially rising as high as $3.50-4.00/lb in late 2008 or early 2009.
"MBR forecasts average annual prices will range between $1.50-2.25/lb from 2010–2027. The market will be vulnerable to pricing spikes similar to that characterising the market at the moment, and we foresee the next price spike returning prices to $3.00-4.00/lb late in the forecast period."
Chromium is the key ingredient in stainless steel — the only alloying element capable of creating its signature stainless and corrosion resistant properties. The base material is chromite, which mining companies like IFM extract and then smelt in order to make ferrochrome. Ninety per cent of all ferrochrome produced is then used in the manufacture of stainless steel.
IFM sells and markets its product under agreements with JISCO and CMC Co-Metals, which includes guaranteed offtake agreements to sell approximately 64% of its planned production on "a take if tendered" basis. Under these off-take agreements, the parties are required to purchase the product at market-related prices, determined either by reference to prices quoted for ferrochrome in various industry publications or by prices paid by IFM's other customers, depending on the volume of product sold to such customers.
As part of these off-take agreements, JISCO has the right to act as exclusive agent to sell IFM's ferrochrome production in Mainland China, Taiwan, Japan and Korea and CMC acts as agent for resale anywhere in the world, excluding the JISCO territories.
