Production Report Q3 2024
29/10/2024 12:30
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12:30 London, 14:30 Helsinki, 29 October 2024 - Afarak Group SE (“Afarak”
or “the Company”) (LSE: AFRK, NASDAQ: AFAGR)
Production report Q3 2024
Afarak Group total production during the third quarter of 2024 was higher when
compared to same period of last year mainly due to higher mining activity as
Chrome Ore prices remained stable during the quarter. The Ferrochrome market
continued to weaken in terms of demand and pricing during Q3 2024 and shows no
sign of recovery to date. The stainless market has been showing low activity.
The weaker expectation from the US and China markets put pressure on the
export-dependent European economies.
Q3/2024 Q3/2023 Change YTD 2024 YTD 2023 Change FY 2023
Speciality Alloys mt 18,669 22,305 -16.3% 65,051 69,303 -6.1% 86,834
Processing mt 4,273 4,998 -14.5% 18,726 18,528 1.1% 21,179
Mining mt 14,396 17,307 -16.8% 46,324 50,775 -8.8% 65,655
South African mines mt 90,165 61,904 45.7% 246,193 191,407 28.6% 270,946
Mining mt 90,165 61,904 45.7% 246,193 191,407 28.6% 270,946
Processing
* The processing volumes decreased by 14.5% during the third quarter of 2024
when compared to same period of last year.
* The processing plant in Germany was on shutdown during the month of July.
Management plans to reduce production in the final quarter of the year to
better manage inventory levels.
Mining
* A substantial increase of 32.0% in the overall mining activity within Afarak
Group when compared to same period of prior year.
* Mining operations at the Turkish mines were 16.8% lower than same period
last year as the maintenance shutdown at on of the mines was extended to the
month of July.
* The decrease in the Turkish mines was offset by higher output in South
Africa to meet demand and capitalise on favourable market conditions. Higher
mining activity was also driven by the recommencement of Vlakpoort mine.
Outlook for Q4 2024
The outlook for the chrome market in the remainder of 2024 is shaped by a mix
of production dynamics, demand drivers, and regional challenges.
1. Supply and Production: South Africa and China continue to dominate the
global chrome ore market. South Africa, the largest producer, supplied about
82% of global output in 2023.
2. Demand: The demand outlook is driven primarily by the stainless-steel
industry, with China leading the way. China's chrome ore consumption remains
robust due to its expanding stainless-steel output, supporting ore prices.
However, there are concerns about weaker demand for ferrochrome in regions
like the EU and the U.S. due to inflationary pressures and geopolitical
uncertainties. China, meanwhile, remains the top importer of chrome ore,
absorbing around 92% of global imports.
3. Price Trends: Prices for chrome ore were gaining momentum, especially
driven by Chinese demand. This trend has reversed recently. Ferrochrome prices
continue to be under pressure due to oversupply and weaker global downstream
markets, particularly for lower-carbon variants of ferrochrome where cheap
imports from Russia, Kazakhstan and India weigh heavily on profitability.
4. Challenges and Opportunities: In summary, the chrome ore market is set to
grow moderately through 2024, with strong demand from China balancing some of
the challenges in supply and downstream markets. South Africa's ore production
will play a critical role, while ferrochrome faces weaker demand outside Asia.
The global push for lower carbon emissions and environmentally friendly
materials should potentially increase demand for low-carbon ferrochrome,
particularly in Europe and North America. Companies investing in cleaner
production technologies may gain competitive advantages.
Helsinki, October 29, 2024
AFARAK GROUP SE
Board of Directors
For additional information, please contact:
Afarak Group SE
Guy Konsbruck, CEO, +356 2122 1566, guy.konsbruck@afarak.com
Financial reports and other investor information are available on the
Company's website: www.afarak.com.
Afarak Group is a specialist alloy producer focused on delivering sustainable
growth with a Speciality Alloys business in southern Europe and a
FerroAlloys business in South Africa. The Company is listed on NASDAQ
Helsinki (AFAGR) and the Main Market of the London Stock Exchange (AFRK).
Distribution:
NASDAQ Helsinki
London Stock Exchange
Main media
www.afarak.com
Attachment
* Afarak_Production report_2024_Q3_EN
(https://ml-eu.globenewswire.com/Resource/Download/ce33b4f6-51d2-4d72-b447-e3479f74f04b)