The document discusses trends in the chrome ore and ferrochrome industry. It notes that 94% of chrome is used for metallurgical applications like producing stainless steel. It then summarizes the history of chrome discovery and use in stainless steel. Finally, it outlines trends like China's growing production share, increasing non-nickel stainless steel usage, and countries pursuing greater self-sufficiency and integration in the chrome value chain.

1. Chrome Ore & Ferro Chrome
Perspectives
Prabhash Gokarn, Head Marketing, FAMD

2. Chrome : Usage
Industrial uses & Intermediate Products - Chromite
Refractory Chemical Metallurgical Foundry Sands
Cement kiln Chrome Plating Ferrous Alloys
Fiberglass furnace Corrosion control -Cast Iron
Glass tank regenerator Metal finishing -Steel :
Mag-chrome refractories Pigments alloy
Others Tanning Chemicals stainless
(Chromates, Non ferrous alloys
1% Di-chromates) Aluminium
Others Copper 3%
Nickel
2%
Others
94%
Foundry
Sands
Metallurgical Use
3% 94% of total chrome 70% of chrome used in
Refractory
1% used in metallurgical metallurgical applications - is
Chemical for making stainless steel
applications - prime
2%
Metallurgical demand driver 18% is for making alloy steel
94%
Prabhash Gokarn, Head Marketing, FAMD
Source : ICDA, USGS

3. Chrome Statistics
Source: Heinz H. Pariser, 2010
Prabhash Gokarn, Head Marketing, FAMD

4. History
Chrome Discovery
Nicolas-Louis Vauquelin in 1797
Chromium-iron spinel now known as chromite (FeOCr2O3).
Colorful salts : name derived from “khrôma” Greek word for colour.
In 1798-99, Lowitz & Klaproth independently discovered chromium from the
Beresof Mines South-Eastern France.
Stainless Steel – 100 years of Stainless Steel – 1912 to 2012
Corrosion resistance of iron-chromium alloys first recognized in 1821 by the
French metallurgist Pierre Berthier
1890s – 1915 : various patents for different iron – chromium stainless alloys.
In 1912 Eduard Maurer invented a ferritic stainless steel. Harry Brearley
usually credited with first patent for Martensitic stainless steel in 1913, & Dr
Hatfield with invention of 18/8 type Austenitic Stainless Steel.
Prabhash Gokarn, Head Marketing, FAMD

5. Chrome History in India
• Discovered 1940s
• Sukinda Cr Mines established 1949
• First Ferro alloy plants in 1950s, production of low
carbon FeCr in India started in 1967 in FACOR &
IDCOL
• Stainless & Alloy steel production in India in Mini Steel
Plants (due to Govt policy /JPC). Alloy Steels Plant set
up in 1965 and Salem Steel Plant in 1982. Rapid
growth in SS production in India from early 1990s.
Viraj set up in 1990.
Prabhash Gokarn, Head Marketing, FAMD

6. Stainless Steel Trends
• Production Base shift from EU to China. Growth in SS production in
India
• Early 2000s AD – SS production dominated by Europe & Asian Tigers
• 2000 - 2010 – Significant shift in Stainless Steel production
• EU & Japan - significant shrinkage
• China & India – significant growth
• Today – Over 35% Stainless Steel produced in China
•
• By 2015 – 60% Stainless Steel will be made in Ch-India
• Non Ni based SS growing :
• Geographic reasons – non Ni SS popular in China, India
• Highly volatile Nickel Prices
• Technology upgrade – possible to form 400S SS (earlier it was difficult)
• Use shift towards ART (Transport) and ABC (Construction) from household. Use
in process industry growing.
Prabhash Gokarn, Head Marketing, FAMD

7. SS Trends
• New Applications
– Water Treatment & de salination
– Energy including Nuclear, Solar & Wind
– Transportation
• New Grades
– Super ferritics – more Cr
– Duplex grades
• Stainless steel production technology advances
– Due to nickel price volatility and research advances 400
and 200 series are expected to grow quicker than 300
series
– Demand for engineering and alloy steels expected to grow
strongly
• Double digit growth in SS Consumption (10-12% )
(Growth in SS Consumption is about 1.2 Times GDP)
Prabhash Gokarn, Head Marketing, FAMD

8. Chrome Alloy Trends
 1990s : Chrome Alloy production located close to SS production
(Japan, Europe)
 Most SS producers depended on tie-ups with FeCr producers
 Major Chrome Alloy producers :
South Africa, Khazakastan, China, India, Zimbabwe
 Rapid Chinese Chrome Alloy production increase :
in sync with strategy to become self-sufficient in FeCr
 Perhaps in future : as countries protect resources (following
India’s example of export duty/ceiling on Cr Ore) production will
shift to countries with ore. (ie China priced out).
Prabhash Gokarn, Head Marketing, FAMD

9. Chrome Alloy Situation
 South Africa struggling to maintain supremacy :
affected by power shortages : losing share to Kazakh &
India.
 Kazakhstan / ENRC : impressive growth
largest producer on date.
invested in South African reserves for further growth.
 India : Government support leading to doubling Ferro Chrome
production
restriction of Chrome Ore exports
allowing captive power plants
Prabhash Gokarn, Head Marketing, FAMD

10. Cr Alloy Market Today
• Fewer buyers as SS prodn concentrated
into China  losing relevance of LT
Benchmark Pricing
• BM being replaced by Bao Steel price
• Bargaining power of buyers > Bargaining
power of suppliers
• SS Mills securing supply of FeCr by equity
investments / forward integration
Prabhash Gokarn, Head Marketing, FAMD

11. Chrome Ore Trends – lower
exports from India
• Upto mid 2000s : India highly dependent on China for export
of Chrome Ore/Concentrate.
• Early 2000s : High market share for Indian Cr
Ore/Concentrate
• Mid to late 2000s : Availability fell, forcing China to look
elsewhere
• Policy of “Value Addition” adopted by India forced a shift from
Chrome Ore to Ferro Chrome exports
• India’s FeCr share in China has increased :
from zero in 2003, to market share in double digits today.
Prabhash Gokarn, Head Marketing, FAMD

12. Chrome Ore Trends – higher exports
from South Africa is temporary
• South Africa not always a large Cr Ore exporter
power problems have forced it to export Chrome
Ore.
• Talks of India like policy on Cr Ore – once power
situation eases.
• Historic precedent of treating Chrome as a
strategic mineral
• Value addition mantra for job creation.
Prabhash Gokarn, Head Marketing, FAMD

13. Chrome Ore - New Geographies of
Supply becoming significant
• Turkey
• Oman
• Pakistan
Prabhash Gokarn, Head Marketing, FAMD

14. Chrome Ore – security driving
value chain integration
• Chinese companies : Cr Ore assets in Zimbabwe &
South Africa.
• Bao Steel : Visa Steel JV
• Posco : LT supply with Visa Steel
• Posco : Samancor JV
• Nisshin : Samancor JV
• GMR : Mine in Turkey
Prabhash Gokarn, Head Marketing, FAMD

15. Chrome Ore - Lower Grades ?
• Use of lower Cr Ore grades – UG2 (rejects
from Platinum Group Mineral mines)
becoming significant.
• Increased use of beneficiated Cr ores – Cr
Concentrate in Ferro Alloy making
Prabhash Gokarn, Head Marketing, FAMD

16. Future Trends
• Growth in SS fueled by new applications, technology advances, high
GDP growth in BRICS.
• Integration of value chain : Cr Ore to SS
• New Geographies of significance : in SS – India, China; in FeCr -
SA, India & Kazhak; in Cr Ore : Turkey, Oman, Pakistan.
• LT BM pricing to evolve into a shorter term BM based on China
transaction price.
• Use of technological advances in Mineral processing – eg
beneficiation and agglomeration and Ferro Alloy making – eg DC
Arc technology will increase.
Prabhash Gokarn, Head Marketing, FAMD