Since the recent period, the price of chrome ore has risen sharply, so what are the main factors affecting the chrome ore market?

According to relevant data, 90% of chromium ore is processed into ferrochromium alloys, which are used as raw materials for stainless steel and special steel, of which the amount of stainless steel is relatively large. About 5% of the chrome ore is processed into chemical chromium salts, 5% of the chrome ore is used to produce refractory materials, and chromite is used to make chrome bricks, chrome-magnesium bricks and other special refractory materials.

It can be seen from the above that in terms of application, the proportion of the refractory industry is very small, mainly affected by the metallurgical industry. my country is a big producer of stainless steel. In recent years, my country's stainless steel output accounts for more than 50% of the global stainless steel output.

In terms of supply, the world's chromite resources are about 12 billion tons, mainly distributed in South Africa, Zimbabwe, Kazakhstan, Finland, Turkey and other countries. Among them, South Africa's resources are relatively large, at 5.5 billion tons, accounting for about half of the world's total resources; Zimbabwe and Kazakhstan's resources are both about 1 billion tons. Kazakhstan, South Africa and India account for 93% of the world's proven reserves. my country's chromium resources are very scarce, mainly distributed in Tibet, Xinjiang, Qinghai, Gansu and other remote western regions.

South Africa is the main source country of my country's chrome ore imports. However, South Africa has weak transportation capacity and high service costs. The two main ports for export are Durban and Richards Bay, and goods are generally transported to the ports by rail. However, rail transport has been problematic in recent years. These include security and cable theft, aging infrastructure due to years of inadequate maintenance and insufficient capacity, limited handling equipment, higher rail service costs, and more. South Africa is also facing a situation where electricity prices continue to rise due to tight power supply. In 2021, the industrial electricity price in South Africa will be 0.455 yuan/kWh. If the electricity price continues to rise by 20.5% in 2022, the electricity price in South Africa will reach 0.55 yuan/kWh. South Africa's advantage over domestic electricity tariffs no longer exists.

In general, the chrome ore market is mainly affected by supply capacity, production costs, transportation and demand, and is also closely related to changes in foreign political situations. The chrome ore used in the refractory industry accounts for a small proportion of the entire chrome ore market, and due to the pollution of chromium, the chrome-free refractory materials used in cement and other industries are vigorously promoted, and the application of chrome ore in the refractory industry is also gradually decreasing. .