South Africa exported 311,700 mt of high-carbon ferrochrome in July, with domestic ferrochrome oversupply persisting [SMM Analysis]

According to South African customs statistics, South Africa exported 311,700 mt of high-carbon ferrochrome in July 2024, down 29,600 mt (8.67% MoM), up 72,100 mt (30.11% YoY). In July, South Africa exported 94,200 mt of high-carbon ferrochrome to China, down 33,800 mt (26.42% MoM), down 5,200 mt (5.25% YoY).

According to SMM, South Africa's high-carbon ferrochrome export volume remained high in July, indicating stable export performance for the year. However, in China's market, the supply of high-carbon ferrochrome has significantly exceeded demand, causing recent price declines. Many domestic ferrochrome producers thus faced the challenge of losses. Despite the intense competition resulting from overcapacity, these producers were limited in their efforts to reduce production, which further squeezed the profit margins of ferrochrome smelting. Meanwhile, although the export profit for South African chrome ore is currently considerable, given the low-price market environment caused by domestic oversupply, significant growth in South African ferrochrome exports remains difficult to achieve.