Increased Chinese ferrochrome production capacity poses a challenge for SA

The outlook for FY2025 anticipates market volatility due to geopolitical tensions, protectionist policies that are being threatened, ongoing regional wars and potential slowdowns in Chinese industrial production.

While declining global interest rates might help, inflationary concerns and currency volatility remain risks.

Demand for stainless steel is expected to remain strong, driven by infrastructure development and manufacturing in Asia. South Africa’s role as a major chrome ore supplier provides an advantage, but increased Chinese ferrochrome production capacity poses a challenge, putting pressure on pricing.

The joint venture Merafe-Glencore plans to review smelting operations, leverage technology for optimisation and cost reduction, and focus on environmental sustainability (including a new solar plant) and Environmental, Social and Governance principles to navigate these challenges.