Shares of Merafe Resources fall 2.6 percent after ferrochrome production in the first nine months of the year fell 15 percent on power buy-back deals with South African electricity supplier Eskom.
The utility entered into power buy-back arrangements with ferrochrome producers during South Africa's winter months to counter electricity shortages. This led producers of the key steel making ingredient to temporarily shut part of their output for three months.
South Africa, the world's second-largest producer of steel feedstock behind China, accounts for 32 percent of the market. - Reuters