Whack the mole

Consolidation in the bulk ferroalloy business is like playing whack the mole. Just as soon as one company goes bankrupt, gets sold, or closes down, another takes its place. I find it amusing that Gulf Mining Group in Oman just announced it is building a manganese smelter in the country and increasing its ferrochrome smelter from 50,000 mtpy to 150,000 mtpy to take advantage of the country’s ore reserves. This comes at a time when prices at or near historically low prices for both commodities.

Anyone got a mallet?

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