The global consumption of ferro-chrome had reached a record high of 9.8Mt in 2012, but at the end of 2013, prices remained near four-year lows due to the expansion in the Chinese ferro-chrome industry, low ore prices and currency depreciation in leading exporting countries.
The demand for ferro-chrome is closely tied to the trends in the stainless steel sector, which accounts for 80 percent of consumption. World consumption have risen five percent over the past five years to an estimated 9.8Mt in 2012. Industry insiders predict that a similar growth will occur through to 2018, which will slightly outpace the rise in stainless steel production because of the shift towards steels with higher chromium content and lower scrap ratios. It is also believed that China will continue to drive this growth in demand.
Global chromium consumption on the other hand, has rebounded after the 2008/2009 recessions to peak at 43,000t in 2012. This growth is attributed to the increase in aircraft deliveries and a higher demand for nickel-based superalloys to raise fuel efficiency. It is believed that chromium demand will rise by more than four percent through to 2018.