Chromium

The metal that makes stainless steel stainless, traded as chrome ore and ferrochrome.

Overview

Chromite ore is smelted into ferrochrome, and the great majority of it goes into stainless steel, which needs at least about 10.5 percent chromium to form its protective oxide layer. South Africa holds most known reserves and is the dominant ore producer, followed by Kazakhstan, Turkey and India. Ferrochrome smelting is power hungry, so South African electricity shortages have repeatedly hit output and shifted processing toward China, the top importer of ore. Prices are set through quarterly European benchmark contracts and Chinese tender prices rather than on an exchange. Chromium metal also goes into superalloys for jet engines, while chrome plating, refractories and pigments are smaller uses.