[SMM Chromium Flash] Afarak Flags Chinese Chrome Ore Demand Recovery Despite H1 Loss

Published: Aug 27, 2026 20:12

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Despite posting a €0.7 million net loss for H1 2026, Afarak Group said Chinese demand for chrome ore continues to grow, with prices turning higher again after easing through the second quarter. The Nasdaq Helsinki- and London-listed alloy producer said its South African chrome ore business is expected to remain stable through the second half, supported by smooth concentrate production at its new Vlaakport mine wash plant.

On the ferrochrome side, Afarak expects demand for standard-grade, low-carbon material to improve once the northern-hemisphere summer holiday period ends, citing very low industry-wide inventory levels as a supportive factor. Its specialty alloys segment is also forecast to see stronger demand growth in the second half. Management cautioned, however, that a weak US dollar will continue to squeeze margins, and that competitively priced imports from Kazakhstan, Turkey, Brazil and India will keep weighing on price development for standard-grade low-carbon ferrochrome.

The improved outlook follows a difficult first half in which CEO Guy Konsbruck described 2026 market conditions as "very complicated," with steep declines in European low-carbon ferrochrome consumption compounded by disruption tied to the Iran and Ukraine conflicts. Whether the anticipated post-summer pickup in ferrochrome demand, together with the recovering Chinese chrome ore market, is enough to offset those headwinds will be a key signal for Afarak's full-year performance.

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