{"id":66497,"date":"2026-05-20T15:27:15","date_gmt":"2026-05-20T09:27:15","guid":{"rendered":"https:\/\/biztrend24.com\/?p=66497"},"modified":"2026-05-20T15:27:15","modified_gmt":"2026-05-20T09:27:15","slug":"global-ferro-chrome-trade-contracts-in-cy25-amid-south-african-supply-disruptions-weak-demand","status":"publish","type":"post","link":"https:\/\/biztrend24.com\/?p=66497&lang=en","title":{"rendered":"Global ferro chrome trade contracts in CY&#8217;25 amid South African supply disruptions, weak demand"},"content":{"rendered":"<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>South Africa&#8217;s exports halve as high power tariffs force smelter shutdowns<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Global stainless steel output rises 2% y-o-y in CY&#8217;25 against 7% in CY&#8217;24<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>China&#8217;s benchmark prices fall 8% y-o-y, pressuring exporters margins<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>Morning Brief:\u00a0Global ferro chrome trade volumes contracted sharply by 26% y-o-y to 5.38 million tonnes (mnt) in CY&#8217;25 from 7.29 mnt in CY&#8217;24, as production disruptions in South Africa coincided with slower stainless steel growth, weaker Chinese import demand, and falling benchmark prices.<\/p>\n<p>According to data cited in Merafe&#8217;s annual report, global ferro chrome production fell 7% y-o-y to 15.9 mnt in CY&#8217;25 from 17.1 mnt a year earlier. Demand, however, increased marginally by 2.5% to 16.4 mnt, although growth slowed from the 5% uptick recorded in CY&#8217;24.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-66498\" src=\"https:\/\/biztrend24.com\/wp-content\/uploads\/2026\/05\/Untitled-design-4-6-300x169.jpg\" alt=\"\" width=\"959\" height=\"540\" srcset=\"https:\/\/biztrend24.com\/wp-content\/uploads\/2026\/05\/Untitled-design-4-6-300x169.jpg?v=1779269173 300w, https:\/\/biztrend24.com\/wp-content\/uploads\/2026\/05\/Untitled-design-4-6-1024x576.jpg?v=1779269173 1024w, https:\/\/biztrend24.com\/wp-content\/uploads\/2026\/05\/Untitled-design-4-6-768x432.jpg?v=1779269173 768w, https:\/\/biztrend24.com\/wp-content\/uploads\/2026\/05\/Untitled-design-4-6.jpg?v=1779269173 1280w\" sizes=\"auto, (max-width: 959px) 100vw, 959px\" \/><\/p>\n<p>Factors influencing global ferro chrome trade in CY&#8217;25:<\/p>\n<p>South African exports halve amid production cuts:\u00a0South Africa, the world&#8217;s largest ferro chrome exporter, recorded a 51% y-o-y drop in shipments to 1.77 mnt in CY&#8217;25, as soaring electricity tariffs, weak margins, and subdued stainless steel demand forced widespread smelter shutdowns.<\/p>\n<p>The sharp decline reinforced growing concerns over South Africa&#8217;s long-term competitiveness in ferro chrome production, particularly against Chinese smelters benefiting from lower power costs and expanding domestic capacity.<\/p>\n<p>Electricity remains one of the largest cost components in ferro chrome production, accounting for an estimated 35-45% of total smelting costs. Repeated electricity tariff hikes over recent years have significantly eroded the competitiveness of South African producers and accelerated capacity curtailments.<\/p>\n<p>Among the largest producers, Glencore&#8217;s ferro chrome output dropped 63% y-o-y to 436,000 tonnes (t) during CY&#8217;25 following the suspension of operations at its Boshoek and Wonderkop smelters in Rustenburg in May and June last year.<\/p>\n<p>Merafe also reported a 63% y-o-y decline in production from its Glencore joint venture to 112,000 t in CY&#8217;25 due to prolonged suspension of smelting operations under unfavourable market conditions.<\/p>\n<p>Together, the Glencore-Merafe operations represent installed ferro chrome capacity of around 2.3 mnt, highlighting the scale of idled production in South Africa.<\/p>\n<p>Besides rising electricity tariffs, South African producers also faced persistent logistics bottlenecks, which further affected operations.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-66499\" src=\"https:\/\/biztrend24.com\/wp-content\/uploads\/2026\/05\/Untitled-design-5-6-300x169.jpg\" alt=\"\" width=\"983\" height=\"554\" srcset=\"https:\/\/biztrend24.com\/wp-content\/uploads\/2026\/05\/Untitled-design-5-6-300x169.jpg?v=1779269189 300w, https:\/\/biztrend24.com\/wp-content\/uploads\/2026\/05\/Untitled-design-5-6-1024x576.jpg?v=1779269189 1024w, https:\/\/biztrend24.com\/wp-content\/uploads\/2026\/05\/Untitled-design-5-6-768x432.jpg?v=1779269189 768w, https:\/\/biztrend24.com\/wp-content\/uploads\/2026\/05\/Untitled-design-5-6.jpg?v=1779269189 1280w\" sizes=\"auto, (max-width: 983px) 100vw, 983px\" \/><\/p>\n<p>Slower stainless steel growth weighs on ferro chrome demand:\u00a0Global stainless steel production slowed, pressuring ferro chrome demand.<\/p>\n<p>According to worldstainless data, global stainless steel melt shop production increased only 2.1% y-o-y to 64.2 mnt in CY&#8217;25, compared with growth of 7% in CY&#8217;24 and 4.6% in CY&#8217;23.<\/p>\n<p>The slowdown reflected weaker industrial activity, softer construction demand, and cautious end-user buying.<\/p>\n<p>China reduces ferro chrome imports amid supply disruptions:\u00a0Chinas ferro chrome imports declined 33% y-o-y to 2.46 mnt in CY&#8217;25 amid South African supply disruptions, rising ferro chrome output, and slower stainless steel production growth.<\/p>\n<p>China&#8217;s ferro chrome production increased marginally by around 1% y-o-y to 8.65 mnt in CY&#8217;25, following a sharp 20% rise in CY&#8217;24. Although growth moderated, the trend reflects sustained domestic smelting expansion.<\/p>\n<p>At the same time, China&#8217;s stainless steel production growth slowed to 3.6% in CY&#8217;25 from 7.5% in CY&#8217;24, reducing procurement requirements for imported ferro chrome.<\/p>\n<p>Meanwhile, China&#8217;s chrome ore imports rose 13% y-o-y to around 24 mnt in CY&#8217;25, while imports from South Africa increased 15% to 19.57 mnt.<\/p>\n<p>The divergence between falling ferro chrome imports and rising chrome ore imports indicates a structural shift in trade patterns, with China increasingly importing raw material and undertaking value-added ferro chrome production domestically.<\/p>\n<p>Benchmark prices weaken, squeezing exporter margins: Average monthly tender prices set by Tsingshan Holding Group, China&#8217;s largest stainless steel producer, declined around 8% y-o-y to RMB 7,900\/t ($1,144\/t) in CY&#8217;25 from RMB 8,600\/t ($1,245\/t) in CY&#8217;24.<\/p>\n<p>Weaker demand conditions and rising Chinese domestic production pressured benchmark ferro chrome prices and compressed exporter margins across major supplying regions.<\/p>\n<p>India&#8217;s exports decline amid lower realisations:\u00a0India&#8217;s ferro chrome exports fell 14% y-o-y to 0.48 mnt in CY&#8217;25 as weaker Chinese demand and lower prices reduced export realisations.<\/p>\n<p>China, the largest buyer of Indian ferro chrome, reduced imports from India by nearly 22% y-o-y to 0.14 mnt from 0.18 mnt in CY&#8217;24.<\/p>\n<p>Spot export offers from India to China declined around 7.4% y-o-y to 88 cents\/lb CNF China from 95 cents\/lb a year earlier.<\/p>\n<p>Average export prices to Japan fell to 94.75 cents\/lb in CY&#8217;25 from 102.73 cents\/lb in CY&#8217;24, while prices to South Korea declined to 92.35 cents\/lb from 99.5 cents\/lb.<\/p>\n<p>Weak margins also affected domestic production. Indias ferro chrome output declined 5% y-o-y to 1.39 mnt in CY&#8217;25 as several producers reduced operating rates or undertook maintenance shutdowns.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-66500\" src=\"https:\/\/biztrend24.com\/wp-content\/uploads\/2026\/05\/Untitled-design-6-6-300x169.jpg\" alt=\"\" width=\"955\" height=\"538\" srcset=\"https:\/\/biztrend24.com\/wp-content\/uploads\/2026\/05\/Untitled-design-6-6-300x169.jpg?v=1779269202 300w, https:\/\/biztrend24.com\/wp-content\/uploads\/2026\/05\/Untitled-design-6-6-1024x576.jpg?v=1779269202 1024w, https:\/\/biztrend24.com\/wp-content\/uploads\/2026\/05\/Untitled-design-6-6-768x432.jpg?v=1779269202 768w, https:\/\/biztrend24.com\/wp-content\/uploads\/2026\/05\/Untitled-design-6-6.jpg?v=1779269202 1280w\" sizes=\"auto, (max-width: 955px) 100vw, 955px\" \/><\/p>\n<p>Kazakhstan&#8217;s exports fall moderately:\u00a0Kazakhstans exports also declined during CY&#8217;25, although the drop was relatively moderate at 5% y-o-y.<\/p>\n<p>Kazakhstan&#8217;s production base remained relatively stable, and producers largely focused on maintaining long-term contractual supply arrangements rather than pursuing aggressive spot exports amid volatile market conditions.<\/p>\n<p>Zimbabwe gains market share:\u00a0In contrast to the broader downturn, Zimbabwe emerged as one of the few countries to register export growth during CY&#8217;25.<\/p>\n<p>The country&#8217;s ferro chrome exports increased 12% y-o-y to 0.45 mnt, supported by government policies favouring value-added ferro chrome production over raw chrome ore exports. The commissioning of new ferro chrome capacity also boosted exports.<\/p>\n<p>Notably, in June 2025, the Zimbabwe government had stated that all new chrome ore mining rights exceeding 100 hectares must be linked to plans for ferro chrome smelting capacity expansion or construction.<\/p>\n<p>Outlook:<\/p>\n<p>BigMint expects global ferro chrome trade volumes to recover gradually in CY&#8217;26 if discounted electricity tariffs in South Africa support the restart of idled smelting capacity.<\/p>\n<p>Additionally, South Africa is considering stricter export regulations on chrome ore, including mandatory export approvals, tighter controls on illegal mining, and a proposed 25% export tax on unprocessed ore. These measures may indirectly support ferro chrome shipments by encouraging greater domestic smelting.<\/p>\n<p>At the same time, China&#8217;s expanding domestic ferro chrome industry remains a major long-term risk for exporters. Chinas strategy of importing more chrome ore while expanding domestic smelting capacity may structurally reduce seaborne ferro chrome trade over the medium term.<\/p>\n<p>Given that China accounts for around 55% of global stainless steel production and consumes nearly 11 mnt of ferro chrome annually, subdued Chinese procurement is likely to weigh on global trade volumes.<\/p>\n<p>Indonesia has also sharply reduced ferro chrome imports to 0.43 mnt in CY&#8217;25 from 0.9 mnt in CY&#8217;24, reportedly due to rising domestic production, further limiting global trade opportunities.<\/p>\n<p>To know more on what&#8217;s happening in global ferro-chrome industry, join the\u00a06th International Ferro Alloys Conference (IFAC 2026)\u00a0being organised by the Indian Ferro Alloy Producers Association (IFAPA) which will take place in Goa from\u00a016-18 September 2026.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>South Africa&#8217;s exports halve as high power tariffs force smelter shutdowns Global stainless steel output&#8230;<\/p>\n","protected":false},"author":1,"featured_media":66501,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[313],"tags":[],"class_list":["post-66497","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-iron-steel"],"featured_image_urls":{"full":["https:\/\/biztrend24.com\/wp-content\/uploads\/2026\/05\/Untitled-design-3-6.jpg?v=1779269229",1280,720,false],"thumbnail":["https:\/\/biztrend24.com\/wp-content\/uploads\/2026\/05\/Untitled-design-3-6-150x150.jpg?v=1779269229",150,150,true],"medium":["https:\/\/biztrend24.com\/wp-content\/uploads\/2026\/05\/Untitled-design-3-6-300x169.jpg?v=1779269229",300,169,true],"medium_large":["https:\/\/biztrend24.com\/wp-content\/uploads\/2026\/05\/Untitled-design-3-6-768x432.jpg?v=1779269229",640,360,true],"large":["https:\/\/biztrend24.com\/wp-content\/uploads\/2026\/05\/Untitled-design-3-6-1024x576.jpg?v=1779269229",640,360,true],"1536x1536":["https:\/\/biztrend24.com\/wp-content\/uploads\/2026\/05\/Untitled-design-3-6.jpg?v=1779269229",1280,720,false],"2048x2048":["https:\/\/biztrend24.com\/wp-content\/uploads\/2026\/05\/Untitled-design-3-6.jpg?v=1779269229",1280,720,false],"covernews-slider-full":["https:\/\/biztrend24.com\/wp-content\/uploads\/2026\/05\/Untitled-design-3-6-1115x715.jpg?v=1779269229",1115,715,true],"covernews-slider-center":["https:\/\/biztrend24.com\/wp-content\/uploads\/2026\/05\/Untitled-design-3-6-800x500.jpg?v=1779269229",800,500,true],"covernews-featured":["https:\/\/biztrend24.com\/wp-content\/uploads\/2026\/05\/Untitled-design-3-6-1024x576.jpg?v=1779269229",1024,576,true],"covernews-medium":["https:\/\/biztrend24.com\/wp-content\/uploads\/2026\/05\/Untitled-design-3-6-540x340.jpg?v=1779269229",540,340,true],"covernews-medium-square":["https:\/\/biztrend24.com\/wp-content\/uploads\/2026\/05\/Untitled-design-3-6-400x250.jpg?v=1779269229",400,250,true]},"author_info":{"display_name":"Biz Trend 24","author_link":"https:\/\/biztrend24.com\/author\/online24"},"category_info":"<a href=\"https:\/\/biztrend24.com\/?cat=313&#038;lang=en\" rel=\"category\">Iron &amp; Steel<\/a>","tag_info":"Iron &amp; Steel","comment_count":0,"jetpack_featured_media_url":"https:\/\/biztrend24.com\/wp-content\/uploads\/2026\/05\/Untitled-design-3-6.jpg?v=1779269229","_links":{"self":[{"href":"https:\/\/biztrend24.com\/index.php?rest_route=\/wp\/v2\/posts\/66497","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/biztrend24.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/biztrend24.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/biztrend24.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/biztrend24.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=66497"}],"version-history":[{"count":1,"href":"https:\/\/biztrend24.com\/index.php?rest_route=\/wp\/v2\/posts\/66497\/revisions"}],"predecessor-version":[{"id":66502,"href":"https:\/\/biztrend24.com\/index.php?rest_route=\/wp\/v2\/posts\/66497\/revisions\/66502"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/biztrend24.com\/index.php?rest_route=\/wp\/v2\/media\/66501"}],"wp:attachment":[{"href":"https:\/\/biztrend24.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=66497"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/biztrend24.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=66497"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/biztrend24.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=66497"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}