Outlook for Chrome

Why It Matters

A looming chrome deficit could push prices higher, affecting steel costs and the economics of infrastructure projects worldwide.

Key Takeaways

• South Africa supplies 85% of global chrome demand.
• Chrome demand tied to stainless‑steel growth across continents.
• High‑chrome ferrous steels replace nickel alloys in infrastructure.
• Projected 3.5% annual stainless steel growth needs extra million tons chrome.
• Potential chrome deficit could boost South African producers’ margins.

Summary

The video outlines the outlook for chrome, emphasizing South Africa’s dominant role as the source of roughly 85% of the world’s chrome supply. While chrome is often overlooked compared with commodities like gold or copper, its importance is anchored in the stainless‑steel sector, which has expanded at an average 5% annual rate over the past two decades. Key insights include a broad-based rise in stainless‑steel consumption across Europe, North America, South America and a rapidly urbanizing India, which still has the lowest per‑capita usage. The industry is shifting from traditional nickel‑based alloys to high‑chrome ferrous stainless steels, prized for corrosion resistance in infrastructure such as bridges, airports and coastal rebar projects. This transition drives a projected 3.5% yearly growth in stainless‑steel output, translating to an additional million tonnes of chrome each year. The presenter cites concrete examples: large capital projects on coastal fronts are increasingly specifying high‑chrome rebar, and galvanized steel applications are expanding. With South Africa uniquely positioned to scale up concentrate production, the supply side remains tightly linked to demand. The speaker warns that, given modest demand growth, the market could slip into a chrome deficit, tightening supplies and potentially lifting prices. Implications are clear: a tighter chrome market would benefit South African miners through higher margins, but also raise input costs for global steel manufacturers and downstream infrastructure developers. Stakeholders should monitor South African output capacity and inventory levels as price signals emerge, given chrome’s critical role in next‑generation stainless‑steel applications.

Original Description

Tharisa has begun underground operations at its South African platinum group metals and chrome mine. The first underground blast took place this week, and development is now underway. The company already has a well established track record of production from its open pit operations and these will continue for some time yet. But the move underground is designed to secure Tharisa's long-term future, and the company is talking about continuing to mine the reef for 60 years. Phoevos Pourolis, Tharisa's chief executive, joins us to tell us more about the underground development, as well as to talk about sentiment around PGMs and chrome, and the new chrome trading facilities that the company has recently put in place.