icda-chromium-2012-s..
icda-chromium-2012-s..
icda-chromium-2012-s..
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Chrome: Stainless steel’s essential ingredient<br />
• Roughly 75% of HC/Charge Chrome consumption<br />
(in gross volume terms) goes to stainless steel production<br />
• Production profiles for HC/Ch ferrochrome and stainless steel are closely correlated –<br />
although ferrochrome production growth has outperformed stainless steel since 2006<br />
• Chrome costs constitute roughly 12% of recent 304 CR strip price (basis: East China<br />
distributor price, Aug. <strong>2012</strong>)<br />
160<br />
Global HC/Ch FeCr production correlates closely with<br />
stainless steel output<br />
Chrome's relative contribution to cost of 304 CR strip<br />
(Chinese distributor basis)<br />
Index of production (2006=100)<br />
140<br />
120<br />
100<br />
80<br />
60<br />
40<br />
HC/Ch FeCr production (RHS)<br />
Global stainless steel production (LHS)<br />
50%<br />
45%<br />
40%<br />
35%<br />
30%<br />
25%<br />
20%<br />
15%<br />
10%<br />
12,4%<br />
45,6%<br />
41,9%<br />
20<br />
5%<br />
0<br />
Source: ICDA<br />
2006 2007 2008 2009 2010 2011<br />
0%<br />
Chrome Nickel Remainder*<br />
*Including Fe units, other costs, logistics to distributor, plus margins.<br />
Source: Steelhome, LME, ICDA
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