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United StatesQ1 2025
In Q1 2025, the global ferrochrome market experienced a notable downturn, with prices declining by approximately $4,235 per metric ton, FOB Shanghai equating to a 2.75% decrease. This decline was influenced by several factors, including increased production capacity and a slowdown in stainless steel demand. For instance, Merafe’s ferrochrome production in South Africa decreased by 7% year-over-year, reflecting broader market trends.
Additionally, rising chrome ore prices, particularly from South Africa, have increased production costs for ferrochrome manufacturers, leading to a tightening of margins and contributing to the price reduction. Despite these challenges, the long-term outlook for the ferrochrome market remains positive, driven by sustained demand from the stainless-steel industry and ongoing infrastructure development projects globally.
Q4 2024
In Q4 2024, the ferrochrome market experienced a notable downturn, with prices dropping by $4,355 per metric ton, FOB Shanghai reflecting an 10.47% decrease. This decline can be attributed to a combination of factors including subdued global stainless steel demand, particularly from major consumers like China and Europe, ongoing supply chain stabilization post-pandemic, and increased production levels from key suppliers such as South Africa and Kazakhstan. Additionally, falling energy costs and easing logistics bottlenecks contributed to lower production costs, further pushing prices down. Market sentiment also remained cautious amid global economic uncertainties, pressuring buyers to reduce procurement volumes and negotiate lower prices.
Q3 2024
For Q3 2024, the ferrochrome market is expected to experience a significant price surge, with an increase of $4,864 per metric ton, FOB Shanghai marking a 1.67% rise. This price uptick is likely to be driven by a combination of factors, including heightened demand from the stainless-steel sector, particularly in regions like China and India, which are major consumers of ferrochrome.
Supply constraints, whether from logistical challenges, production disruptions, or raw material shortages, could also play a role in tightening the market. As a result, this price increase might reflect the ongoing pressures in global commodity markets, including energy costs and geopolitical uncertainties. Manufacturers and traders will need to adjust their strategies to accommodate the rising costs, potentially passing on higher production expenses to consumers. This price rise could also incentivize increased production to meet demand, but the extent of that response will depend on the flexibility of suppliers and market dynamics in the coming months.
Q2 2024
In Q2 2024, ferrochrome prices dropped sharply by $4784 per metric ton, FOB Shanghai a decline of 7.49%, mainly due to market oversupply and weakening demand from the stainless-steel industry. Overproduction following earlier profit surges led to a saturated market, while stainless steel producers, particularly in China, faced losses and cut back on ferrochrome purchases. This combination of excessive supply and reduced demand significantly pressured prices and created a challenging environment for producers.
Q1 2024
In the first quarter of 2024, the global ferrochrome market experienced a significant downturn, with prices declining by approximately $5,172 per metric ton, FOB Shanghai or 0.26%. This sharp drop was primarily driven by a combination of factors, including a severe supply surplus, weak demand from stainless steel producers, and declining chrome ore prices.
Ferrochrome producers, particularly in regions like Inner Mongolia, faced mounting losses, leading many to reduce or halt production. Despite expectations of a seasonal uptick in demand, the market remained sluggish, with high-carbon ferrochrome prices reaching nearly three-year lows. The oversupply situation and weak demand dynamics contributed to a buyer-dominated market, making it challenging for producers to achieve price recovery in the short term.
Q1 2025
In the first quarter of 2025, India’s ferrochrome market experienced a notable decline, with prices dropping by $1,827 per metric ton, FOB Mumbai representing a 7.89% decrease. This downturn was primarily driven by subdued demand from the stainless-steel sector, both domestically and internationally.
European and Chinese markets, significant consumers of ferrochrome, faced economic uncertainties and reduced production, further dampening demand. Consequently, Indian ferrochrome producers, facing lower spot liquidity and reduced export opportunities, adjusted their output accordingly. The cost of production for high-carbon ferrochrome in India is approximately $1355.45–1390.51per ton ex-works, and only producers with their own captive chrome ore mines are making a profit at present.
Q4 2024
In Q4 2024, India’s ferrochrome market saw a price increase of $1,984 per metric ton, FOB Mumbai marking a 3.03% rise driven by strong international demand, particularly from Asian markets like China, Taiwan, and Korea, following the end of quarterly benchmark pricing in June. This shift allowed prices to reflect real-time supply-demand dynamics, favoring producers with efficient cost structures.
However, rising input costs, especially due to chrome ore auction prices surging to $315.49 per ton, put pressure on margins. Companies with captive ore resources, such as IMFA, managed to maintain EBITDA margins around 20%. Despite the positive price movement, the sector faces headwinds from weak stainless-steel demand and cautious buyer sentiment, which could weigh on production and prices in early 2025.
Q3 2024
In the third quarter of fiscal year 2024 (Q3FY24), India’s ferrochrome market experienced a notable downturn, with prices declining by approximately $1,925 per metric ton, FOB Mumbai reflecting a 6.22% decrease. This drop was primarily attributed to weakened demand from key markets, particularly Europe and China, which significantly impacted global price movements. European stainless-steel consumption, a major driver of ferrochrome prices, remained subdued due to ongoing economic uncertainties, leading to a 6–7% price correction in January 2024.
Similarly, China’s domestic ferrochrome market faced challenges, including reduced demand from stainless steel producers and increased domestic production, which exerted downward pressure on prices. Consequently, Indian ferrochrome producers, heavily reliant on exports, experienced a decline in export volumes and faced margin pressures, with many opting to cut production or shift focus to more profitable alloys like manganese.
Q2 2024
In Q2 2024, the Indian ferrochrome market witnessed a notable upswing, marked by a price increase of $2,053 per metric ton, FOB Mumbai representing a 4.81% rise. This price momentum reflects improved demand from the stainless-steel sector, which remains the primary consumer of ferrochrome.
Supply constraints due to logistical challenges and tighter availability of chrome ore have also contributed to the price firming. Additionally, supportive global trends and higher export inquiries have reinforced domestic pricing. This price movement signals a strengthening market, potentially benefiting producers and indicating positive sentiment in the alloy segment heading into the second half of the year.
Q1 2024
In Q1 2024, India’s ferrochrome market experienced a notable downturn, with high-carbon ferrochrome prices declining by approximately $1,959 per metric ton, FOB Mumbai equating to a 4.18% decrease. This price drop was primarily driven by weak demand from the stainless-steel sector, both domestically and internationally, leading to subdued market activity. Producers faced challenges in securing higher offers, as buyers resisted elevated prices amid economic uncertainties in key markets like Europe and China.
Additionally, the Odisha Mining Corporation’s (OMC) chrome ore auctions indicated falling ore prices, further pressuring ferrochrome prices. As a result, ferrochrome producers, especially those without captive chrome ore mines, experienced squeezed margins, with some opting to reduce production or shift focus to more profitable manganese alloys.
PriceWatch is your trusted resource for tracking global ferrochrome price trends. Our platform delivers real-time data and expert analysis, offering deep insights into the key factors driving price fluctuations in the ferrochrome market. By monitoring critical events such as geopolitical tensions, supply chain disruptions, and economic shifts, PriceWatch keeps you fully informed of market dynamics.
In addition, PriceWatch provides detailed forecasts and updates on production capacities, enabling you to anticipate market changes and make well-informed decisions. With PriceWatch, you gain a competitive edge in understanding all the elements that influence ferrochrome prices worldwide. Stay ahead of the curve with PriceWatch’s reliable, accurate, and timely ferrochrome market data.
Track PriceWatch's ferrochrome price assessment on a weekly basis since 2015 onwards, along with short-term forecasts, and get access to the detailed report in a downloadable format.
• Energy Cost Inflation & Carbon Regulations (2021–2022): Rising global energy costs and tightening carbon emission rules increased production costs, placing upward pressure on ferrochrome prices.
• COVID-19 Pandemic Disruptions (2020): Global lockdowns led to production halts and transportation bottlenecks, causing short-term supply shortages and brief price increases followed by demand destruction and a subsequent price drop.
• Export Restrictions & Environmental Crackdowns (2016–2019): Stricter environmental regulations and export policies in China and other producing countries reduced supply, tightening the market and increasing prices.
This research methodology ensures that PriceWatch delivers the most accurate, timely, and actionable Ferrochrome pricing assessments, helping our clients stay ahead of market trends and make informed business decisions.
Molecular Weight[g/mol]
CAS No
HS Code
Molecular Formula
Ferrochrome is an essential alloy of chromium and iron, primarily used in the production of stainless steel. Created through the smelting of chromite ore in electric arc furnaces, ferrochrome imparts corrosion resistance, strength, and durability to steel products. Available in high-carbon and low-carbon grades, ferrochrome plays a critical role in achieving the desired hardness and surface finish in a wide range of steel applications. Its contribution to stainless steel makes it indispensable in industries such as construction, automotive, aerospace, and household appliances. By enhancing the performance and longevity of steel, ferrochrome supports the development of resilient, high-performance, and sustainable infrastructure and technologies.
Packaging Type
Grades Covered
Incoterms Used
Synonym
PriceWatch Quotation Terms:
Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.
| Parameter | Specification/Details |
| – Chromium (Cr) | 50–70% |
| – Carbon (C) | High-carbon: 6–8%Medium-carbon: ~0.5–1.5%Low-carbon: 0.03–0.10% |
| – Silicon (Si) | 0.5–2% |
| – Sulfur (S) | ≤ 0.03% |
| – Phosphorus (P) | ≤ 0.03% |
| – Iron (Fe) | Balance |
| – Density | ~7.1 g/cm³ |
| – Melting Point | 1,500–1,800 °C |
Applications
Ferrochrome is an essential alloy composed primarily of iron and chromium, widely used in the production of stainless steel and other corrosion-resistant alloys. It is a critical material that imparts hardness, strength, and resistance to oxidation and wear, making it indispensable in various industrial applications. Ferrochrome plays a vital role in the manufacturing of high-performance steels used in construction, automotive, aerospace, and infrastructure projects. Its high chromium content makes it essential for producing stainless steel with superior durability and surface finish. Additionally, ferrochrome contributes to the production of specialized alloys used in high-temperature and chemical environments, ensuring structural integrity and long service life.
The pricing of Ferrochrome is influenced by several factors, including:
i. Supply & Availability
Primary Production:
Ferrochrome is produced by smelting chromite ore (FeCr₂O₄) in electric arc furnaces, primarily in countries with large chromite reserves. The availability depends on mining operations, energy inputs, and smelting capacity.
Global Reserves:
South Africa dominates global ferrochrome production and chromite reserves, followed by Kazakhstan, India, and China. Disruptions in any of these major producing regions, due to strikes, energy shortages, or policy changes, can constrain supply and drive prices up.
ii. Demand from Key Industries
Stainless Steel Production:
The largest consumer of ferrochrome is the stainless-steel industry, where it is used to add chromium content (typically 10–20%) for corrosion resistance. Demand closely follows global stainless steel production trends, especially in China and Europe.
Alloy & Specialty Steel Applications:
Ferrochrome is also used in high-strength, wear-resistant, and heat-resistant steels for aerospace, automotive, and construction sectors, contributing to demand diversity.
iii. Grade & Chromium Content
High Carbon vs. Low Carbon Ferrochrome:
Ferrochrome is traded in several grades—high carbon (HCFeCr), low carbon (LCFeCr), and medium carbon (MCFeCr). High carbon grades are most common, while low carbon varieties are used in specific applications and command a premium due to additional refining steps.
Chromium Content:
Higher chromium content in ferrochrome improves its efficiency in alloying, making higher-grade material more valuable.
iv. Geopolitical Factors
Export Policies & Tariffs:
Countries may impose export duties or quotas on raw chromite or ferrochrome to encourage domestic value addition. For instance, South Africa has considered restrictions on raw ore exports to promote local beneficiation.
Trade Disputes:
Tariffs on steel and alloy products, particularly between the U.S., China, and the EU, can indirectly affect ferrochrome prices by shifting demand patterns or altering trade flows.
v. Market Speculation & Investment Trends
Commodities Investment:
Ferrochrome, like many bulk alloys, is influenced by trends in metals markets, particularly if demand for stainless steel surges due to infrastructure spending or industrial growth.
Short-Term Price Swings:
Announcements related to production curtailments, power shortages, or inventory levels can cause significant short-term volatility in ferrochrome pricing.
vi. Alternative Materials & Substitutes
Substitution Limitations:
While there are limited substitutes for chromium in stainless steel, certain applications may shift toward materials like aluminium or nickel alloys where possible, though such substitution is typically constrained by performance or cost considerations.
Innovation in Metallurgy:
New alloying techniques or material efficiencies may reduce the amount of ferrochrome required per ton of steel, influencing long-term demand.
vii. Processing & Refinement Costs
Energy-Intensive Smelting:
Ferrochrome production is highly energy-intensive. Electricity cost and availability especially in key producing nations like South Africa are critical to production economics. Power outages or price hikes significantly affect production and pricing.
Labor & Operational Costs:
Mining and metallurgical labour costs, as well as regulatory compliance and maintenance of high-temperature furnaces, influence cost structures and pricing.
viii. Currency Exchange Rates
Trade Currency Fluctuations:
Ferrochrome is traded globally, with pricing often denominated in U.S. dollars. Exchange rate fluctuations between the dollar and local currencies (e.g., South African rand, Indian rupee, Chinese yuan) affect export competitiveness and pricing.
Import-Export Margins:
Currency volatility impacts both producer margins and importer costs, sometimes leading to temporary shifts in supply chains or spot price adjustments.
Rising feedstock prices increase the cost of producing ferrochrome, leading to higher market prices and potential supply constraints.
Inflation can raise ferrochrome prices by increasing the cost of mining, energy, and transportation, while also boosting demand in infrastructure and stainless-steel production, which relies heavily on ferrochrome as a key alloying element.
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