It is reported that South Africa is considering imposing a US$50/ton export duty on chrome ore.

Consequently, the price of ferro-chrome is anticipated to continue its upwards trend amid rising stainless production. As the biggest stainless steel producer, China still relies on imports of the raw material, including chrome ore and ferro-chrome. China, the biggest ferro-chrome importer from South Africa, which took 31 percent of total imports in 2007, no doubt will be suffering higher import prices.

India’s government is leading the move to impose the export tax on ferro-chrome in order to give first priority to its domestic market, because the country is expecting to raise its stainless steel production by 45 percent in the next five years. Indian ferro ore imports in China have dropped sharply in 2007; therefore South Africa has replaced India as the biggest exporter to China.

According to a market analyst, higher ferro-chrome prices may be prompting mills to seek stainless steel scrap for substitution.