Chrome & Manganese Update: Glencore Restarts Smelters as Chrome Prices Slide

South Africa's ferrochrome restarts are now showing up in the numbers. Glencore has restarted its Boshoek and Wonderkop smelters and lifted third-quarter ferrochrome output by 29%, just as Chinese ferrochrome and chrome ore prices grind lower against high port stocks. In manganese, quarterly reports from Eramet and Tshipi show weaker ore prices and Chinese port stocks above 6 Mt. Freight firmed on Capesize demand, while Durban's container terminal remains congested. Here is what buyers, sellers and investors need to know.

Glencore Restarts Boshoek and Wonderkop as Ferrochrome Output Recovers

Glencore has restarted both of the South African smelters it idled earlier: Boshoek came back in September and Wonderkop in October, following the earlier restart of Lion. The restarts follow the new Eskom electricity pricing agreements concluded in June 2026, with NERSA approving a negotiated tariff of 62 cents/kWh. Glencore expects ramp-up at both smelters to continue through Q4 (SMM).

Glencore's production report, published on 29 October, shows attributable ferrochrome output of 125,000 t in Q3 2026, up 29% from 97,000 t in Q2 and far above 13,000 t in Q1. Nine-month output is still 46% lower year on year at 235,000 t, and Q3 included only Boshoek's first month back. Attributable chrome ore output rose 11% quarter on quarter to 906,000 t, although nine-month ore production of 2.553 Mt is 7% below the same period of 2025. The figures are Glencore's 79.5% share of the Glencore-Merafe Chrome Venture (SMM).

For the market, this means more South African alloy and more in-house ore consumption at a time when Chinese prices are already weak. With more furnaces running, more of the venture's ore is likely to be consumed locally rather than exported.

Chinese Chrome Prices Keep Grinding Lower

China's chrome market extended its slide this week. On 28 October, retail high-carbon ferrochrome (50% Cr basis) was 7,400–7,500 yuan/t in Inner Mongolia and 7,450–7,600 yuan/t in Sichuan. South African 40–42% concentrate at Tianjin port slipped 0.25 yuan/dmtu, Turkish lump and Zimbabwean concentrate were flat, and the CIF futures price for South African 40–42% concentrate was US$255/t. SMM said chrome ore port inventory had returned to a high of 5 Mt (SMM).

By 29 October, Inner Mongolia ferrochrome had eased again to 7,300–7,500 yuan/t and Sichuan to 7,400–7,600 yuan/t. South African concentrate at Tianjin fell a further 0.25 yuan/dmtu while CIF futures held at US$255/t. SMM expects China's October high-carbon ferrochrome production to "decline notably", and sees ferrochrome moving sideways and chrome ore consolidating "on a subdued note" in the near term, with high port stocks still pressuring traders (SMM).

Eramet and Tshipi Reports Show Weaker Manganese Ore Prices

Tshipi's quarterly report for the three months to 30 September shows production of 823,800 t and sales of 848,566 t, down from 966,183 t and 943,740 t in the previous quarter. The average CIF price fell to US$4.44/dmtu from US$4.95, and the FOB price to US$3.57 from US$4.05, against a FOB production cost of US$2.51/dmtu. EBITDA fell to A$22.5 million from A$34.2 million. The report links the weakness to soft Chinese demand, increased South African exports and high port stocks. Spot prices were US$4.21/dmtu CIF on 30 September and US$4.28/dmtu at the end of October, and total manganese ore stocks at Chinese ports rose to 6.021 Mt from 5.946 Mt (ferro-alloys.com).

Eramet's Q3 figures tell a similar price story with stronger volumes. The 44% Mn CIF China index averaged US$4.94/dmtu in Q3 and US$5.14 for the first nine months, and Eramet assumes about US$4.95 for Q4. Ore transported rose 7% to 1.7 Mt and external ore sales rose 15% to 1.4 Mt, while alloy production fell 10% to 157,000 t. Eramet expects record diesel prices and higher sea freight to weigh on South Africa's lower-grade ore exports, and expects European refined alloy prices to rise in Q4, "supported by the impact of the CBAM" (ferro-alloys.com).

Mysteel published Chinese manganese ore prices on 29 and 30 October, but the figures are behind a paywall, so we have not quoted them (Mysteel). We found no freely available Chinese silicomanganese spot prices published in the last 48 hours.

Pricing Snapshot

Commodity/Item	Grade / basis	Price	Date
High-carbon ferrochrome	Inner Mongolia, 50% Cr, retail	7,300–7,500 yuan/t	29 Oct
High-carbon ferrochrome	Sichuan, 50% Cr, retail	7,400–7,600 yuan/t	29 Oct
High-carbon ferrochrome	Inner Mongolia / Sichuan, 50% Cr	7,400–7,500 / 7,450–7,600 yuan/t	28 Oct
Chrome ore	SA 40–42% conc., Tianjin port	−0.25 yuan/dmtu on each day	28–29 Oct
Chrome ore CIF futures	SA 40–42% conc.	US$255/t (flat)	28–29 Oct
Chrome ore port stocks	China ports	About 5 Mt	28 Oct
Manganese ore	Tshipi spot, CIF China	US$4.28/dmtu	End Oct
Manganese ore	37% Mn, FOB Port Elizabeth	US$3.24/dmtu	End Oct
Manganese ore	44% Mn, CIF China, Q3 average	US$4.94/dmtu	Q3 2026
Manganese ore port stocks	China ports	6.021 Mt	End Oct
Ferromanganese / silicomanganese	Europe, Q3 average	€1,664/t / €1,199/t	Q3 2026
Manganese ore / silicomanganese	China spot	Not publicly available in window	29–30 Oct
Freight	Port Elizabeth–Tianjin	US$37.60/t	End Oct
Baltic Dry Index	Main index	2,712 (+60)	29 Oct
Baltic Dry Index	Main index	2,652 (+49)	28 Oct
Baltic Capesize / Panamax / Supramax	Index	3,886 (+5%) / 1,965 (−2.8%) / 1,878 (−0.3%)	28 Oct
Bunker fuel	Durban VLSFO / LSMGO / HSFO, daily change	−US$7/t / +US$26/t / +US$3/t	29 Oct, 09:00 GMT
Brent crude	Front month	US$113.49/bbl (−US$1.99)	29 Oct, 09:00 GMT

Sources: SMM, SMM, ferro-alloys.com (Tshipi), ferro-alloys.com (Eramet), Hellenic Shipping News, Hellenic Shipping News, ENGINE. SMM did not publish an absolute Tianjin chrome ore price in these two reviews, only the daily change. Manganese ore prices are per dry metric tonne unit; the Tshipi and Eramet figures come from company quarterly reports published on 30 October. Mysteel's Chinese manganese prices were behind a paywall. Durban bunker figures are daily changes, not absolute prices.

Logistics and Regulatory Highlights

Freight. The Baltic Dry Index broke a three-day decline on 28 October, rising about 1.9% to 2,652 as the Capesize index surged roughly 5% to a two-week high of 3,886. Panamax fell 2.8% to 1,965, its lowest since late April, and Supramax eased 0.3% to 1,878 (Hellenic Shipping News). The index added a further 60 points to 2,712 on 29 October (Hellenic Shipping News). Tshipi reports Port Elizabeth–Tianjin freight at US$37.60/t at the end of October, up from US$36.40/t at 30 September (ferro-alloys.com).

Fuel. In Durban on 29 October, VLSFO fell US$7/t, while LSMGO rose US$26/t and HSFO US$3/t. Brent fell US$1.99 to US$113.49/bbl (ENGINE).

Ports and rail. Transport Minister Barbara Creecy said on 29 October that the timing of the handover contributed to congestion at the Durban Gateway Terminal (Pier 2), with performance expected to recover between December 2026 and February 2027. She counted 39 ships at anchorage, while Transnet said only eight were waiting for the terminal. Transnet's Solly Letsoalo also outlined plans to concession the Northern Cape manganese line and invite private investment in the Richards Bay dry bulk terminal (Freight News). SAAFF modelling cited a day earlier estimates the Durban backlog adds about 18 days through supply chains (Freight News).

Policy. Eramet expects the EU's CBAM to support European refined manganese alloy prices in Q4 (ferro-alloys.com). We found no new decisions on South African chrome export taxes, AGOA or mining law published in the last 48 hours.

What This Means for African Exporters

Chrome sellers: Chinese ore prices are still slipping and port stocks are around 5 Mt, so expect buyers to keep pushing on price. Growing South African smelter demand from Glencore's restarts may absorb some ore locally, which could support domestic offtake.
Manganese sellers: CIF prices of around US$4.3/dmtu against Chinese port stocks above 6 Mt leave little room for higher offers. Higher diesel and freight costs hit lower-grade South African ore hardest, so watch margins closely.
Buyers: Soft Chinese chrome and manganese prices favour buyers in the short term. Capesize rates are rising and Durban's container terminal is congested, so allow for higher freight and longer lead times.
Investors: Glencore's restarts show the 62c/kWh tariff deal working, but weak Chinese ferrochrome prices will test smelter margins. Plans to concession the Northern Cape manganese line are worth tracking for long-term export capacity.

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