Our operating context

Key statistics for 2023

The global position of ferrochrome

Elements influencing the global demand for and pricing of ferrochrome:

• Global economic conditions
• Exchange rates
• Stainless steel demand
• Growth of Chinese ferrochrome industry
• Chrome ore exports

South African chrome industry

Facts

• Approximately 3.2mt of the world’s ferrochrome production of 15.4mt was supplied by South Africa in 2023
• Over 72% of the world’s chrome reserves are in South Africa
• The industry provides a significant number of direct and indirect jobs in South Africa

Challenges faced by South African ferrochrome producers

• Increasing production costs
  • electricity
  • labour
• Socio-political challenges
• Legislative uncertainty
• Commodity prices and demand
• Chrome ore exports
• Electricity supply
• Logistics

Ferrochrome production and its role in stainless steel

Produced by high-temperature reduction (smelting) of chromite, ferrochrome contains iron, chrome, minor amounts of carbon and silicon, and impurities such as sulphur, phosphorous and titanium.

Chrome is a metallurgical marvel. It brings critical properties to the metals with which it is alloyed.

Add it to carbon steel in the form of ferrochrome and the steel becomes "stainless" – corrosion resistant, mechanically strong, heat resistant, hard wearing and shiny. Stainless steel is used almost everywhere in modern life, from nuclear reactors to exhaust pipes, architecture, kitchenware and a host of other applications.

Specialty steels produced for applications such as tools, injection moulds, camshafts, etc. also derive the high mechanical strength, hardness and heat resistance required from their chrome content.