Baosteel Group scores steady supply of Indian ferrochrome
Shanghai. November 17. INTERFAX-CHINA - Baosteel Resources Co. Ltd., the wholly-owned subsidiary of China's top steel mill Shanghai Baosteel Group Corp., has entered into a long-term agreement with India's Facor Group to procure ferrochrome, Baosteel Group announced on Nov. 17.
According to the announcement, Facor has pledged to ensure a stable supply of quality ferrochrome to Baosteel Group on a long-term basis. The agreement marks Baosteel Resources' first agreement with an overseas ferrochrome supplier and will pave the way for further cooperation between the two companies in resource development, ferrochrome and coke trading, as well as investment in related equipment.
Ferrochrome is used primarily in stainless steel production. At present, Baosteel Group has to import large quantities of ferrochrome every year as China has relatively scarce chromite resources.
"Baosteel Group has a production capacity of 1.50 million tons per annum and its stainless steel output is expected to reach 1.20 million tons this year. Ferrochrome forms up to 20 percent of the raw material in stainless steel production," an employee from Baosteel Group's Stainless Steel Business Unit, surnamed Wang, told Interfax on Nov. 17.
The announcement did not disclose further details on annual delivery volume and value or terms of the agreement.
Facor is India's largest ferroalloy producer. At present, the company operates four chromite mines that can produce 140,000 tons of high-carbon ferrochrome annually.