Chromite entered 2011 in a flurry of increasing prices and tightening supply. South Africa, the world’s largest chromite producer, was at the forefront of this activity, as producers battled increased energy and logistics costs, in addition to perceived supply shortages.
The picture at the end of this year is somewhat more optimistic – for consumers at least – with prices declining from their May-July peak as availability of metallurgical material has increased.
Chromite supply for non-metallurgical, or so-called speciality markets is largely dictated by the cyclical nature and fortunes of the ferrochrome and stainless steel industries. These metallurgical applications consume around 95% of global chromite output.
At the end of 2011, traders revealed that chromite sand prices were declining in line with prices for metallurgical grades and stainless steel end products.