Chrome Salt and Metal Imports Drop Markedly amid Riots in Kazakhstan and Conflicts between Russia and Ukraine

SHANGHAI, Mar 28 (SMM) - According to SMM statics, Kazakhstan has a large number of high quality chrome ore resources. And in recent years, the country has reduced its export of chrome ore and ramped up the export of chrome salt, ferrochrome after processing. Kazakhstan is the main exporter of chromium oxide green, the raw material of chrome metal. Kazakhstan's chromium oxide green is mainly exported to Russia to be further processed into chrome metal with Europe being the final destination. The metal will be used in making superalloys, resistance alloys, precision alloys to be applied in aviation engines, automobile engines, gas turbines and other fields.

China imports of chrome oxide green from Kazakhstan in 2021 accounted for 90% of the total import volume. However, since January 2022, domestic unrest broke out in Kazakhstan and the export of chrome green was restricted. China’s import volume of chrome oxide green from Kazakhstan in January-February 2022 dropped to zero. As a result, domestic chrome salt supply declined, and the major domestic chrome salt manufacturers raised the prices of chrome oxide green several times.

Russia is the largest exporter of chrome metal, with Europe and China being the major consumers. After the Kazakhstan unrest in January, chrome oxide green supply has been restricted. And in February when Russia-Ukraine conflict broke out, Russian exports encountered difficulties. Due to multiple factors, China's imports of chrome metal from Russia stood at only 510,000 mt in February, and the total import volume was only 713,400 mt, a drop of 84.69% MoM. Chrome metal supply shortage has greatly shored up the prices.