China has overtaken South Africa as the world’s largest processor of chrome into ferrochrome, reflecting a major shift in the global metallurgical landscape, according to Business Insider Africa. The transition has been driven in large part by soaring electricity costs in South Africa, which have undermined the competitiveness of its smelting operations.
South Africa’s ferrochrome industry, once dominant in value‑added processing, has faced unviable power tariffs that forced several furnaces to close. While the government and state power utility have intervened to reduce electricity rates for key producers to about 62 cents per kilowatt-hour, only a portion of installed capacity is currently operational, leaving South Africa’s position in global processing weakened.
In contrast, China’s ferrochrome sector has benefited from lower energy costs and well-integrated industrial infrastructure, enabling more cost-effective smelting operations. With electricity accounting for a substantial share of production costs, China’s advantage has allowed it to capture processing volumes previously handled in South Africa, reshaping global supply chains for this essential stainless-steel input, as reported by Discovery Alert.
Reuters note that this shift highlights the critical role of energy policy and industrial competitiveness in sustaining long-standing production hierarchies. Efforts to stabilise power costs and revive South Africa’s smelter capacity remain closely watched, as they will determine whether the country can regain its foothold in downstream chrome processing.
