How Kazakhstan and Albania Are Reshaping Global Ferrochrome Supply as South Africa's Output Struggles

[SMM Express] South Africa's ferrochrome exports fell 44.57% year-on-year as of June 2026, driven largely by extended smelter suspensions at Wonderkop and Boshoek. Against that backdrop, two developments elsewhere in the global ferrochrome market this year point to a supply base actively reconfiguring around Kazakhstan and Europe.

In January 2026, Albania's ALBCHROME began a capacity expansion and modernization of its ferrochrome smelting facilities, aimed specifically at capturing rising demand from European stainless steel manufacturers. The timing aligns with the EU's Carbon Border Adjustment Mechanism, in effect since January 2026, which favours suppliers with shorter transport distances and lower embedded carbon footprints — criteria that structurally favour a European supplier like Albania over South Africa. Separately, in March 2026, Glencore proposed backing Kazakh businessman Shakhmurat Mutalip's $1.4 billion bid for a 40% stake in Eurasian Resources Group (ERG), one of the world's largest ferrochrome producers via its Kazchrome subsidiary, offering an $800 million upfront pre-payment in exchange for future ferrochrome shipments.

Glencore's move is notable given the company's own deep stake in South African ferrochrome through the Glencore-Merafe Chrome Venture, pointing to diversification of its ferrochrome supply exposure beyond South Africa. With Kazakhstan's Bolashak mine continuing to ramp toward 7.5 million tonnes/year of chrome ore capacity and Albania positioning to serve Europe directly, South African producers face a more competitive global landscape by the time domestic smelting capacity is fully restored, rather than an unchanged market to return to.