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On September 14, Elkem AS, a ferroalloy producer headquartered in Norway announced it would shut down the electric furnace for ferro-silicon which is the biggest at Elkem's Island plant for 6 weeks during October to December, in consequence of which the cutback in the production of ferro-silicon is anticipated to be 5,000 - 10,000 tons. The background for the above is Landsvirkjun, a state-owned electric power corporation asked the industry to reduce the consumption of electricity. The reservoir storage in the main water reservoirs in the east and north sides of the country are low, and therefore the power shortage is anticipated to occur in the winter time during 2015 to 2016. Elkem reported that this time's case will lead to the decreased supply of standard type of ferro-silicon into the spot market albeit the shipping quantity of the products already under contract has been secured. For a reference, when there is any change in transmission of electricity from the public electric power corporation, the condition of production also will be changed, when Elkem is scheduled to make a fresh report. At Island plant, there was a decrease of about 10,000 tons in the production of ferro-silicon also in February 2014 owing to power shortage. |
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