Glencore released its full-year 2022 attributable ferrochrome production statistics of 1,488kt with a 2023 production guidance of 1,310kt.

Glencore is the majority joint venture partner of Glencore-Merafe, which operates the largest capacity of ferrochrome furnaces globally alongside Chinese-owned Samancor Chrome, both based out of South Africa.

Project Blue’s recently updated Chromium Market Service highlights that the ferrochrome market balance outlook is expected to remain tight over 2023. The lower production guidance by Glencore will add further pressure to the market as demand from Chinese stainless steel producers will recover this year following a pivot on the zero-COVID policy.

Stainless steel major, Tsingshan, has already kicked off the year with two consecutive ferrochrome tender price increases above market expectations. According to our cost analysis, tender price increases are required to support the higher Chinese cost position and increase ferrochrome output.