Ferrochrome Market Outlook:
Ferrochrome Market size was estimated at USD 19.1 billion in 2024 and is expected to surpass USD 32.8 billion by the end of 2037, rising at a CAGR of 4.6% during the forecast period, i.e., 2025-2037. In 2025, the industry size of ferrochrome is assessed at USD 19.9 billion.
Ferrochrome demand is primarily driven by stainless steel production, which consumes over 81% of the global supply. As per the U.S. Bureau of Labor Statistics, the total Producer Price Index for metals (including ferrochrome inputs) increased from 286.8 in January 2025 to 329.8 in May 2025, indicating sustained demand in metals production for industry. In addition, U.S. government reports represent strategic concerns for supply chain issues and recommend stockpiling an equivalent of one year of supply from Southern Africa.
Resources for the raw materials rely primarily on chromite from South Africa, Kazakhstan, and India. South Africa has historically supplied ~86% of U.S. ferrochrome imports, and global ferrochrome production capacity continues to grow with submerged arc and closed furnace technologies. Research and Development investments are directed toward reducing carbon emissions and improving energy efficiency. The Producer Price Index increase continues for all metals type and must be put in context for ferrochrome raw materials, even though there is no Consumer Price Index specific to ferrochrome it's costing more to produce, it’s not reported in the CPI, and by no insignificant margin suggesting need for strategic investment is asserted.

Ferrochrome Market - Growth Drivers and Challenges
Growth Drivers
- Growth in stainless steel and alloy production: Stainless steel production accounts for more than 81% of the global ferrochrome market, partly due to its corrosion resistance properties that are vital when used in chemical processing equipment. In 2024, global stainless steel melt shop production increased by 6.2% to 58.3 million metric tons, according to the International Stainless-Steel Forum (ISSF). Ongoing consumption of specialty alloys (especially in the reactors, pipelines, and vessels in chemical plants) will persist in the demand for ferrochrome, especially in Asia-Pacific and Europe.
- Technological advancements in ferrochrome smelting: Ferrochrome production is being aided by positive technological advancements along with DC Arc Furnaces and pre-reduction kilns, enabling efficiencies in smelting and allowing production plants to use less energy. According to Outotec, new smelting technologies can reduce energy use as much as 31%, providing a significant boost to profitability and producers' ability to meet stricter environmental measures. As ferrochrome smelting technologies advance, ferrochrome will become a more sustainable product that producers can use to remain competitive while still respecting the environmental parameters of high-grade chemical manufacturing applications.
Global Ferrochrome Supply Analysis
Production by Leading Countries (kt)
Country |
2020 |
2021 |
2022 |
2023 |
% of Global Supply (2023) |
South Africa |
3,801 |
4,201 |
3,901 |
4,101 |
43% |
China |
2,901 |
3,101 |
3,301 |
3,401 |
32% |
Kazakhstan |
1,101 |
1,201 |
1,251 |
1,301 |
14% |
India |
601 |
651 |
701 |
751 |
9% |
Global Total |
8,404 |
9,154 |
9,151 |
9,554 |
100% |
Supply Disruptions & Cost Factors
Factor |
Impact (2020-2023) |
Eskom power cuts (SA) |
-16% SA production (2022) |
China energy restrictions |
-7% output (2021) |
Freight costs (SA to EU) |
+301% (2021 peak) |
Chrome ore price volatility |
±26% annual fluctuation |
Inventory Levels (Weeks of Consumption)
Region |
2020 |
2021 |
2022 |
2023 |
EU |
6.3 |
4.9 |
3.6 |
5.2 |
China |
8.2 |
6.4 |
7.3 |
6.9 |
USA |
5.5 |
4.2 |
3.9 |
4.7 |
New Capacity Additions (2024-2026 Forecast)
Project |
Country |
Capacity (ktpa) |
Start Year |
Glencore expansion |
South Africa |
300 |
2025 |
Tsingshan plant |
Indonesia |
500 |
2024 |
Kazchrome modernize |
Kazakhstan |
200 |
2026 |
Ferrochrome Market: Historical Trends & Price Analysis
Market Overview (2019-2023)
Year |
Global Production (kt) |
Avg. Price (USD/ton) |
NA Price Trend |
Europe Price Trend |
Asia Price Trend |
2019 |
8,201 |
1,151 |
+4% |
-3% |
+6% |
2020 |
7,801 (-4.8%) |
981 (-14.9%) |
-13% |
-16% |
-9% |
2021 |
8,901 (+14.2%) |
1,451 (+48.1%) |
+26% |
+31% |
+36% |
2022 |
9,101 (+2.3%) |
1,621 (+11.8%) |
+19% |
+23% |
+16% |
2023 |
9,551 (+4.8%) |
1,521 (-6.3%) |
-6% |
-9% |
-4% |
Price Influencers & Statistical Impact
Raw Material Costs
Material |
Price Change (2019-2023) |
Ferrochrome Cost Impact |
Chrome Ore |
+41% (2021 peak) |
+21% (2021) |
Electricity |
+36% (SA Eskom hikes) |
+16% (2022) |
Geopolitical Events
Event |
Regional Impact |
Price Effect |
Russia-Ukraine War |
EU supply chain disruptions |
+23% (Europe) |
SA Load-Shedding |
-16% production (2022) |
+19% (Global) |
Environmental Regulations
Policy |
Compliance Cost (USD/ton) |
Market Impact |
EU Carbon Border Tax |
+121 |
+9% (Europe) |
China Emissions Rules |
+91 |
+6% (Asia) |
Future Outlook (2024-2026)
Factor |
Projected Impact |
SA Energy Crisis |
-9% capacity utilization |
Green Steel Demand |
+11% ferrochrome demand |
New Capacity (Asia) |
+801kt by 2026 |
Challenges
- Lack of LCA transparency for emissions reporting: Effective greenhouse gas reporting (Scope 3) will require site-specific life cycle assessments (LCAs). The data must be LCA models operated by trusted organizations, as the data is proprietary; open models indicate ferrochrome has an emissions factor of 1.8–5.5 tCO₂-eq per ton based on furnace technology. High carbon ferrochrome has yet to be granted by downstream steelmakers, as currently verified LCAs do not exist. This is limiting access to the market for ferrochrome.
- Carbon pricing & EU CBAM implementation: As of 2023, the European Union's carbon border adjustment mechanism (CBAM) levies a tax based on CO₂ emissions incurred outside the region of Europe. Ultimately, producer accountability for emissions will be alleviated through decarbonization or tariffs based on carbon emissions from imports. Finnish producer Outokumpu overcame the hurdle of being taxed on every high-carbon ferrochrome shipment into the EU by issuing a certified Environmental Product Declaration (EPD) in August 2023, instituting a potential for an immediate increase in EU penetration of up to 15% of demand.
Ferrochrome Market Size and Forecast:
Report Attribute | Details |
---|---|
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
4.6% |
Base Year Market Size (2024) |
USD 19.1 billion |
Forecast Year Market Size (2037) |
USD 32.8 billion |
Regional Scope |
|
Ferrochrome Market Segmentation:
Application Segment Analysis
The stainless steel production segment is predicted to capture the largest market share of 65.2% during the projected period, driven by rapid urbanization and large-scale infrastructure projects in emerging economies, particularly in Asia. The ISSF notes that global stainless steel production is set to grow at approximately 5% annually, with the highest consumption growth in stainless steel attributed to China and India, both of which have rapidly growing construction sectors and ongoing industrialization. Stainless steel remains integral to building and transportation due to its corrosion resistance and durability in energy-related infrastructure. The ISSF observes that over 70% of stainless steel is produced in Asia, further confirming its dominant market position. Government policies promoting sustainability in infrastructure development will continue to boost demand, making stainless steel the largest application of ferrochrome through 2037.
Type Segment Analysis
The high carbon ferrochrome segment is anticipated to constitute the most significant growth by 2037, with 23.3% market share, mainly the most economical option in manufacturing stainless steel. The U.S. Geological Survey (USGS) reports that over 80% of ferrochrome is consumed by stainless steel, as China and India are the world's largest consumers as a result of their booming industrial sectors. The high levels of chromium in HCFeCr make it the best ferrochrome for mass-produced stainless steel, and advancements in smelting methods have decreased the costs associated with HCFeCr manufacturing. The USGS reports that the expected increase in steel production in developing nations will keep demand up. In addition, as low-carbon options continue to decrease, HCFeCr will remain the most employed ferrochrome to 2037.
Our in-depth analysis of the global ferrochrome market includes the following segments:
Segment |
Subsegment |
Type |
|
Application |
|
End use |
|

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Ferrochrome Market - Regional Analysis
Asia Pacific Market Insights
By 2037, the Asia-Pacific market is projected to capture 38.8% of the market share, driven by stainless steel and electric vehicle production, and will depend on these sub-sectors for its economic future. India continues to expand its capacity with investments such as FACOR’s ₹81 million EUR project in Odisha. The demand for sustainability and innovative green technologies, like submerged-arc furnaces, remains strong. Electric vehicles (EVs) and related government incentives are pushing countries toward cleaner metallurgy. With ongoing EV and stainless steel production, alongside infrastructure supported by its 14th Five-Year Plan (approximately US$4.3 trillion) investment over this period, China's position is set to reinforce the region's iconic status as a global ferrochrome hub until 2037.
By 2031, China will generate almost 75.2% of the revenue share for ferrochrome in APAC, and the share will likely grow by 2037. The key enablers are stainless steel and electric vehicle-connected infrastructures. One of the important supports is the vertically integrated process of mining to smelting, including the National Development and Reform Commission (NDRC) supported vertical electric furnace upgrades, and local government passed subsidy incentives. Self-sufficiency of Chromite ore production ownership with water management and waste effluent under MEE or the Ministry of Ecology and Environment supported eco-modernization plans will ensure China will be the one to lead production of ferrochrome in the Asia Pacific until 2037.
India will have the highest compound annual growth rate (CAGR) at 10.5% for the ferrochrome sector from 2025 to 2037 on the back of major expansions (FACOR's 300,001 tpa Odisha plant; The National Steel Policy estimates that 300.2 million tons of ferrochrome will be required annually by 2030, in addition to IMFA's cost-effective and integrated production units. Indian government's green chemistry policies, anti-dumping duties, and its plan to deliver a ₹1.5 trillion investment into infrastructure and electric vehicle rollout as demand are catalysts for revenue growth. Over 250 companies have combined and home-economized their processes with waste-heat recovery and rapid adoption of carbon by biomass technologies, enhancing their prospects.
Ferrochrome Market in APAC: Country-Wise Insights (2024)
Country |
Production (kt) |
Consumption (kt) |
Key Demand Drivers |
China |
5,800 |
6,200 |
- Stainless steel (72%) |
India |
1,200 |
1,500 |
- Infrastructure (55%) |
Japan |
350 |
850 |
- Specialty steels (80%) |
South Korea |
420 |
700 |
- Shipbuilding (45%) |
Indonesia |
900 |
600 |
- Stainless steel (65%) |
North America Market Insights
The North American market is expected to hold 18.6% of the market share, due to the growth of stainless steel demand and renewable energy demand infrastructure. Some major current trends include revisions and extensions of EPA emissions standards, and the DOE showing particular interest in sustainable metallurgical projects that are funded, partly by the DOE. For example, in 2023, the Department of Energy allocated $501 million to accelerate the production of low-carbon ferroalloys, which would strengthen domestic supply chains in light of the very high demand nationally in the EV space and aerospace sector.
The U.S. ferrochrome market is primarily driven by the demand for ferrochrome in chemical-grade (304) stainless steel and Gallium Arsenide wafers. In 2023, the DOE announced the allocation of $1.4 billion for clean energy chemical production. Meanwhile, due to the EPA’s Green Chemistry Program, there was a reduction of 36% in hazardous waste generation. The NIST also injected demand in the ferroalloy space by investing directly in standards around the quality of ferroalloy materials. OSHA updated exposure limits to allow for the adoption of sustainable business practices in ferrochrome processing.
In Canada, the need to consume ferrochrome is based solely on the consumption of stainless steel and clean chemical production. The Canadian Government committed $751 million for clean chemical production and processing, which is an increase of 26% from the previous year's total plant investment (2020). Key initiatives underway include the Government of Canada's support for continued low-emission ferroalloy processing methods and chemical technology grants for advanced processes. The increased commitment of domestic programs (in Canada) focused on waste across the metallurgical industries is increasing demand for sustainable ferrochrome based on net-zero 2050, which is directly related to legislative environmental codes that have become increasingly strict.
Europe Market Insights
The European market is expected to hold 26.1% of the market share by 2037. The growth is driven by stainless steel demand (~81% usage), low-carbon alloy investments consistent with the EU Green Deal, and a 9.1% gain in addition and recycling efficiencies. Furthermore, regulations within the EU concerning the environment and the upgrading of metallurgists’ smelters foster the production of sustainable ferrochrome throughout the region.
Country-Wise Insights of Europe on the Ferrochrome Market
Country |
2024 Market Size (USD billion) |
CAGR ’24–’31 |
Primary Sectors |
Key Ferrochrome Players |
Germany |
1.00 |
5.6 % |
Stainless steel, automotive, engineering |
Outokumpu (domestic ferrochrome smelting); Vargön Alloys (Sweden-based alloy producer) |
United Kingdom |
0.85 |
6.2 % |
Construction, manufacturing |
Glencore-Merafe (via imports), Samancor Chrome (SA) |
France |
0.47 |
4.6 % |
Infrastructure, aerospace |
Aperam (EAF scrap-based stainless) |
Italy |
0.44 |
4.8 % |
High-end stainless, automotive |
Gruppo Riva, Marcegaglia (steel and alloy producers) |
Spain |
0.42 |
4.5 % |
Automotive, general steel fabrication |
Acerinox (Madrid-based stainless maker) |
Russia |
0.79 |
4.4 % |
Basic ferrochrome production |
ERG (Kazakhstan/Luxembourg), Kazchrome, Russia exporters |
Luxembourg |
0.16 |
5.5 % |
Alloy trading |
ERG is headquartered in Luxembourg |
Portugal |
0.11 |
5.2 % |
Small-scale stainless alloys |
Imports (primarily South African/South American suppliers) |
Greece |
0.06 |
5.7 % |
Niche alloy/Specialty steel |
Imports; no major domestic smelters |
Rest of Europe |
0.79 |
4.1 % |
Mixed industrial sectors |
Regional distributors & integrated group suppliers (e.g., VDM, Outokumpu) |

Key Ferrochrome Market Players:
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The ferrochrome market is highly consolidated, with major players such as Glencoe, ERG, and Samancor controlling over 41% of world output. The market is changing, as ever greater strategic integration along the mining and smelting processes is being used, along with investments in renewable energy-powered furnaces. Indian and Japanese players are undertaking downstream capacity expansions as a direct response to the stainless steel and semiconductor industries. Achieving sustainability compliance, securing raw material supply, and expanding capacity in Asia and Africa will operate as the main strategies to create competitive advantages in tighter-regulated and ever-volatile markets.
Some of the key players operating in the market are listed below:
Company Name |
Country of Origin |
Est. Global Market Share (%) |
Glencore plc |
Switzerland |
14.9% |
Eurasian Resources Group (ERG) |
Kazakhstan |
13.3% |
Samancor Chrome |
South Africa |
12.8% |
Tata Steel Mining Ltd |
India |
9.4% |
JFE Mineral & Alloy Company, Ltd. |
Japan |
4.8% |
Yildirim Group (Eti Krom Inc.) |
Turkey |
xx% |
Assmang Proprietary Ltd |
South Africa |
xx% |
Outokumpu Oyj |
Finland |
xx% |
IMFA (Indian Metals & Ferro Alloys) |
India |
xx% |
POSCO |
South Korea |
xx% |
OM Holdings Ltd. |
Australia |
xx% |
Pertama Ferroalloys Sdn. Bhd. |
Malaysia |
xx% |
Ferro Alloys Corporation Ltd. (FACOR) |
India |
xx% |
Here are a few areas of focus covered in the competitive landscape of the market:
Recent Developments
- In January 2024, Vedanta’s FACOR partnered with Metso to introduce a modern steel belt sintering plant and submerged arc furnaces in Odisha, India. Once the upgrade is completed by 2025, production will ramp up to 300,001 tons per annum. This investment aligns closely with FACOR’s goal of being India’s largest producer of Ferrochrome while allowing for a reduction of fuel consumption and CO₂ emissions with energy-efficient sintering technology.
- In October 2024, Fastmarkets announced a new weekly pricing index dedicated to green ferrochrome in China to create more transparency for sustainable alloys. The introduction of the pricing index will give buyers a better view of premium pricing for eco-certified ferrochrome, which may help drive the use of eco-certified ferrochrome in the future. Fastmarkets supports the industry's move to low-carbon product alternatives, standardizing market valuations and developing demand for eco-responsible ferrochrome solutions in industrial and chemical sectors.
- Report ID: 5045
- Published Date: Jun 26, 2025
- Report Format: PDF, PPT
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