【ferro-alloys.com】：

Globally, most of the chrome ore is used in metallurgical applications. However, chrome ore is also used, though to a much lesser extent, in refractories, as foundry sands and as a chemical grade as shown below. Afarak produces ferrochrome which is the main type of chrome used in metallurgical applications, in turn mainly driven by the demand for stainless steel. 6 Therefore, chrome ore and ferrochrome are very much correlated to the developments of the stainless-steel industry.

2021 Market overview

The production of Low Carbon Ferrochrome in 2021 has been slightly higher than the one in 2020, about 4%, reaching a total output of approximately 780kt . The year 2021 has seen COVID-19 continue to challenge the economies jointly with factors like the increase of the raw materials, the energy , the setup of the export tax from China and the introduction of one from Russia as well which have also contributed to the overall increase of prices. The stainless steel production during the first nine months of 2021 have increased of about 17% Y-o-Y with very sharp increases, between 16% and 25%, USA, Europe and Asia, totalling 42,980 tons.

Market sentiment for 2022

The price increase trend, triggered during 2021, will continue during 2022 mainly due to the geopolitical situation, logistical constrains, lack of raw materials and materials , energy and inflation factors. One of the main factors driving the price and the availability of energy which can create huge increase in production costs on a worldwide basis.

Taking into consideration all these unstable variables we are of the believe that these factors might continue to sustain a sharp price volatility also during 2022.

The strong demand for Stainless Steel and, as a consequence for ferro-chrome, is expected to continue during 2022 but it will depend a lot on the impacts of the present geopolitical situation and other factors like the monetary policies and interests rates applied by the Central banks, a possible export tax on South African ore ,Stainless steel industry consolidation, surging inflation , surge in energy prices are some of the main factors which will influence the prices and the availability of ferrochrome during 2022.

• [Editor:Alakay]