Chinese ferrochrome industry

2026-04-23 19:49:49

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The Chinese ferrochrome industry has undergone structural reshaping in the past

The Chinese ferrochrome industry has undergone structural reshaping in the past decade, with continuous expansion of production capacity and output. By 2025, the production of high carbon ferrochrome will reach 9.038 million tons, an increase of over 40% compared to 2016. The main production areas are highly concentrated in Inner Mongolia (55%), Guizhou, Guangxi, and Sichuan, forming a 'strong in the north and weak in the south' pattern. The industry is deeply reshaped by the dual control policies of environmental protection and energy consumption, accelerating the withdrawal of small and medium-sized backward production capacity. The effective production capacity will decrease by 12.3% from its peak in 2024, promoting the upgrading of the entire industry to enclosed large furnaces and high-efficiency equipment. The proportion of green electricity smelting is expected to exceed 15% by 2026. The resource side is highly dependent on imports, with chromium ore's external dependence exceeding 98%. South Africa (60%) and Kazakhstan (23%) constitute the core supply sources, and resource security pressure continues to exist. The concentration of industries has significantly increased, with CR3 enterprises accounting for 78% of production capacity. Leading enterprises have strengthened their cost advantages through the integrated layout of 'coal electricity chromium iron'. After overcapacity in 2024, supply and demand will shift towards tight balance from 2025 onwards, with stable support from downstream stainless steel demand. The new energy sector (such as hydrogen storage tanks and photovoltaic target materials) will become an emerging growth pole, promoting the industry's transformation towards green and high-end.


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