Stainless steel growth boosts chromium

The steel industry is the major consumer of both metals.

The U.S. Bureau of Mines says world resources of shipping-grade chromite stand at about 33 billion tons (good for a few centuries, at least), with southern Africa accounting for more than 99% of these resources. In terms of actual mine output, South Africa and the Soviet Union are the world’s top producers.

Metals Week was recently quoting a Turkish ore price for the metal of $230-255(US) per tonne.

In 1988, the bureau reports that strong stainless steel demand in the major producing areas of the U.S., Japan and Europe was the reason for the supply shortfall.

“Inadequate ferrochromium supply resulted in increasing ferrochromium prices and delays in stainless steel shipments,” the government agency says.

New ferrochromium plants and plant expansions are under way or being planned in a number of countries. If all announced projects were to come on stream during the next three years, it is estimated the current market economy production capacity — three million tons per year — could be exceeded by 20%.

The stainless steel scrap market, as one might expect, has received a boost because of the demand imbalance for chromium.

Three researchers with investment dealer Shearson Lehman Hutton in London recently took a “sideways” look at investment strategy. What pressure, they wondered, could the environmental lobby bring to bear on the metals and mining industry.

In particular, Robert Davies, Stephen Briggs and Rhona O’Connell looked at seven metals — aluminum, lead, nickel, uranium, platinum, copper and zinc — and how the metals might fit into the thinking of “ethical” investment fund members.

“At first pass, many dismiss the mining industry as being one of the worst offenders in the league table of ecologically bad industries,” the Shearson employees wrote. “However, whilst they criticize mining, they are happy to enjoy steel cars, aluminum airplanes, lead batteries and good plumbing in copper pipes.

“Although there are negatives, it is undoubtedly clear the benefits to the human race of warmth, shelter and improved sanitation have probably been the largest factor increasing life expectancy and quality of life.”

Of the seven metals, the researchers decided aluminum and platinum might have the most appeal. Among the reasons for choosing aluminum are its popularity in lightweight, fuel efficient cars, and its ability to be recycled by the beverage can industry.

Platinum, of course, is playing a pollution-fighting role as an important ingredient in the manufacture of catalytic converters for motor vehicles.

An aluminum frame for automobiles? It may happen sooner than you think.

It was recently reported Alcan Aluminum helped in the development of such a frame for a Ferrari race car, having already had a hand in a prototype Jaguar.

Steel has been the favored metal of automakers in the past because it was easy to weld. Now, Alcan reports it has a technique which glues aluminum parts together and then bakes the joint, making for a strong union. The process has been used in the aerospace industry for years.

A Chicago company claims to have a synthetic compound which can replace molten pig iron (hot metal) or scrap in the production of steel by conventional methods.

American Iron Carbide Corp. calls its compound iron carbide (Fe3C) and says it is composed of about 93% iron and 7% carbon. It says the raw materials for iron carbide production are iron ore or any iron oxide waste, and a hydrocarbon such as natural gas or coal.

The company claims the quality of the steel produced using the compound is equal to or better than that made with other sources of iron, and is less expensive. Also, because the compound would replace other iron sources in existing steelmaking plants, its use would require little additional capital investment.

The New York Commodity Exchange (Comex) will add contract months for trading in high grade (grade one) copper futures contracts, effective with this year’s July spot copper futures contract.

Trading in the high grade copper contract will be conducted for delivery in every current calendar month, the immediately following 11 calendar months and every January, March, May, July, September and December in the 23-month period following the current calendar month.

]]>