PRODUCER OF HIGH CARBON FERROCHROME
High Carbon Ferrochrome is produced mainly in South Africa and China, with these two countries sharing 68% of global production. Almost in entirety, the chrome ore used in both these countries are of South African origin. The rest of the market is made up of production in Kazakhstan (11%), India (10%), Finland (5%) and the rest of the world (6%) comprising of Scandinavia, Middle East, Malaysia, and Zimbabwe.
When assessing the high carbon ferrochrome industry, China, South Africa, Kazakhstan and India should be the focus as this is the bulk of world supply.
10.589 Million tonnes of HCFeCr was produced in 2016 with the demand levels at 10.785m tons.
96% of all Chrome ore produced is routed towards the metallurgical production of ferrochrome, producing High Carbon, Medium Carbon, and Low Carbon Ferrochrome.
Within ferrochrome, silica, phosphorous, Sulphur, and in most cases Carbon are contaminants in the production of the end use steel. The elements cause mechanical or strength issues and therefore need to be removed at a cost.
The lower the levels of these elements, the higher the price that is afforded due to the customers not incurring the cost of removal. Low carbon trades at a premium to medium carbon and medium carbon trades at a premium to high carbon.