South Africa’s Ferrochrome Exports Fall as China Demand Weakens

South Africa’s high-carbon ferrochrome exports fell sharply in July 2026 as weaker Chinese demand combined with softer buying across several major markets, highlighting continued pressure on the country’s ferrochrome industry.

Exports declined 20.8% month-on-month to 97,656 tonnes from 123,310 tonnes in June. The drop marks a significant reversal from June, when shipments were largely unchanged from May, suggesting that the recent stabilisation in the sector has yet to develop into a sustained recovery.

China remained South Africa’s largest ferrochrome destination, but imports fell 27.2% to 28,337 tonnes, reducing China’s share of exports from 31.6% to 29%. The decline comes amid concerns about a potential ferrochrome surplus in China, where domestic smelting capacity has expanded while global stainless steel demand remains weak.

Japan moved in the opposite direction, increasing its purchases of South African ferrochrome by 31.8% to 23,716 tonnes. Japan consequently became the second-largest destination, accounting for 24.3% of South Africa’s July exports. US imports also increased, rising 29% to 11,415 tonnes.

However, the stronger Japanese and US demand was not enough to offset declines elsewhere. Italy’s imports fell 33.3% to 12,000 tonnes, while South Korean purchases dropped 29.3% to 14,504 tonnes. Exports to other destinations plunged 59.7% to 7,684 tonnes, indicating that July’s weakness extended beyond China.

Supply constraints are also limiting the industry’s ability to respond to changing demand. Ferrochrome production from the Glencore-Merafe Chrome Venture fell 75% to 28,000 tonnes during the first half of 2026, following prolonged suspensions at the Wonderkop and Boshoek smelters and a partial suspension at Lion.

The restart of Wonderkop and Boshoek only began taking effect after an electricity pricing agreement with Eskom was finalised in June. As a result, July was effectively an early stage of the production ramp-up, with additional output yet to translate into significant export volumes.

The weakness in ferrochrome exports is becoming increasingly notable against South Africa’s rising chrome ore exports. More raw chrome ore