icda-chromium-2012-s..

Prospects for Supply
• Key expansion projects due for commissioning prior to 2015: Outokumpu; ENRC;
Xstrata Lion II…and several projects planned in China, notably the Shanxi Taigang
Wanbang JV (300kt) and Mintal in Inner Mongolia (300kt)
• The Chinese expansion projects depend on imported ore. This has proved viable in
the recent past, as chrome ore has lost value relative to ferrochrome since 2010
Chrome ore prices have been weaker than ferrochrome prices since mid-2010
140
130
120
Index: Jan 2010=100
110
100
90
80
70
Chinese HC FeCr import, transaction, US cents/lb Cr
Turkish ore, cif China
UG2 ore, cif China
60
Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08
Source: Ryans Notes