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South Africa supply decline
What it is
South Africa has historically been the largest ferrochrome producer, but power shortages, load-shedding, rising electricity tariffs and smelter closures have reduced output substantially
Global supply chains are diversifying toward India and Kazakhstan as a result
Impact on industries
- The clearest structural opportunity for Indian ferrochrome - a major competitor withdrawing capacity for reasons unrelated to Indian competitiveness
- Supports global pricing, since displaced South African tonnage is not readily replaced from elsewhere
- Encourages global buyers to qualify Indian suppliers, creating relationships that persist beyond the immediate shortage
- South Africa is also shifting toward exporting raw chrome ore rather than alloy, which supports Chinese smelting instead of Indian
- The underlying cause is a power crisis that could ease, so the advantage is contingent rather than permanent