Chrome & Manganese Update: SA Chrome Ore Exports Boom as India Expands Ferrochrome

South Africa's chrome ore exports are booming while most of its ferrochrome furnaces stay cold, and chrome and manganese were the only two mining sectors to grow in August. India is adding ferrochrome capacity fast, with IMFA commissioning a new 100,000 t/y plant, and in Zimbabwe Afrochine has secured US$155.5 million to power its smelter with solar. Dry bulk freight fell for a ninth straight session, but Supramax rates kept rising. Here is what buyers, sellers and investors need to know.

South Africa's Chrome Ore Exports Boom While Its Smelters Cling to Life

South Africa exported 7.3 Mt of chrome ore in the second quarter of 2026, up 28% year on year, while ferrochrome exports fell 18% to 364,000 t, according to Tips data cited by The Citizen (republished from Moneyweb). Ferrochrome exports routed through Mozambique dropped from 174,000 t in the June 2025 quarter to zero. China was the largest market, while Japan and South Korea showed the biggest quarter-on-quarter gains (The Citizen).

The smelting side is still fragile. Only 11 of the country's 66 ferrochrome furnaces were operating a few months ago. Merafe's attributable ferrochrome output fell 75% to 28,000 t in the six months to June while unit costs rose 61%, yet its chrome ore sales rose 78% to R1.78 billion. The article reports that Nersa approved a 62c/kWh tariff for ferrochrome smelters in May, a 54.4% cut on the earlier rate, with five-year (Samancor) and three-year (Glencore-Merafe) agreements and an 80% take-or-pay commitment. Glencore-Merafe's Boshoek and Wonderkop smelters are expected to resume by November, according to Opis. The writer warns that "growing Chinese supply and the risk of oversupply could continue to squeeze margins" (The Citizen).

Official data back up the strength in ore. Stats SA figures reported by SMM show chromium ore output rose 11.1% year on year in August and manganese ore 4.1%, the only two sectors to grow, while total mining output fell 12.7%, the steepest annual decline since October 2022. PGMs fell 22.5%, coal 11.7% and iron ore 16.2%.

India Expands Ferrochrome as IMFA Commissions Kalinganagar Plant

Indian Metals and Ferro Alloys (IMFA) has commissioned an ₹800-crore greenfield ferrochrome plant at Kalinganagar, Odisha, with 100,000 t/y capacity, lifting its total to 534,000 t/y. The plant has two 33 MVA closed submerged arc furnaces and an 8.7 MW off-gas power unit, and produced first metal on 25 August 2026. IMFA targets 500,000 t/y of output by FY28 and says its captive Sukinda and Mahagiri chrome mines will supply all the ore needed (Business Standard).

Vedanta's FACOR produced 24,000 t of ferrochrome in the September quarter, up 26% year on year, and 50,000 t of chrome ore (SMM). Figures presented at the International Ferro Alloys Conference in Goa show India's chrome ore output rose 12% to 3.53 Mt in FY2025–26 and ferrochrome output 10% to 1.49 Mt, although SMM notes these "do not by themselves establish changes in export availability or the market balance" (SMM).

Because India's new capacity is largely fed by captive mines, it adds ferrochrome supply without adding much demand for imported ore. That matters for South African sellers who compete with Indian metal in Japan, Korea and Europe.

Afrochine Secures US$155.5 Million for Zimbabwe Smelter Solar Plant

Afrochine Smelting has secured a US$155.5 million package for the 115 MW Centrachine Solar PV Project in Selous, Zimbabwe, which will supply its ferrochrome smelting operations through a dedicated transmission line under a 25-year power purchase agreement. The financing combines an US$87.5 million long-term facility led by the Trade and Development Bank, a US$65 million bridge facility from Sinohydro Leasing International and a US$3 million FBC Bank facility underwritten by Old Mutual. Commissioning has been brought forward to July 2027 from October 2027 (SMM).

SMM says the project could improve long-term power security for the smelter, but its effect on costs will depend on how the plant performs and on the supply terms (SMM). For the region, it shows how smelters are moving to secure their own power rather than relying on grid tariffs alone.

Pricing Snapshot

Commodity/Item	Grade / basis	Price	Date
Ferrochrome smelter power tariff	South Africa, Nersa-approved rate	62c/kWh (−54.4% vs previous rate)	Reported 15 Oct
Chrome ore exports	South Africa, Q2 2026	7.3 Mt, +28% y/y	Reported 15 Oct
Manganese ore shipments	Port Hedland, September (all to China)	105,000 t, +31.5% m/m, flat y/y	Published 15 Oct
Baltic Dry Index	Main index	2,545 (−4.57%)	15 Oct
Baltic Capesize Index	Index	3,322 (−8.5%)	15 Oct
Baltic Panamax Index	Index	2,356 (−2.2%)	15 Oct
Baltic Supramax Index	Index	1,856 (+0.6%)	15 Oct
Capesize / Panamax earnings	Average daily	US$29,417 / US$21,680	14 Oct
Bunker fuel	Durban VLSFO / LSMGO / HSFO, daily change	+US$12/t / +US$21/t / +US$9/t	14 Oct, 09:00 GMT
Bunker fuel	Singapore VLSFO / LSMGO / HSFO, daily change	−US$3/t / −US$19/t / +US$60/t	15 Oct, 17:00 SGT
Brent crude	ICE front month	US$104.10/bbl (−US$1.23)	15 Oct

Sources: The Citizen, SteelOrbis, Trading Economics, Baird Maritime, ENGINE, ENGINE. Mysteel published daily chrome ore offers (CIF Shanghai) and manganese ore surveys on 15–16 October, but the figures are behind a paywall, so no fresh chrome ore, ferrochrome, manganese ore or silicomanganese spot prices were openly available in the 48 hours before this post. There was no new ferrochrome tender or stainless surcharge. ENGINE gives daily changes only, not absolute bunker prices. Earlier reports described the 62c/kWh tariff as still awaiting approval; The Citizen reports it as approved by Nersa in May.

Logistics and Regulatory Highlights

Freight. The Baltic Dry Index fell 4.57% to 2,545 on 15 October, its ninth straight decline and lowest since 30 June. The Capesize index dropped 8.5% to 3,322, its lowest since early April, after a 9.1% fall to 3,630 on 14 October. Panamax slipped 2.2% to 2,356, while Supramax rose for a second day to 1,856 (Trading Economics). Average Capesize earnings fell US$3,302 to US$29,417/day on 14 October (Baird Maritime). Many chrome and manganese parcels from southern Africa move on Supramax and Ultramax ships, so the Capesize slide is not lowering freight on those cargoes.

Fuel. Durban bunker prices rose on 14 October, with VLSFO up US$12/t and LSMGO up US$21/t (ENGINE). On 15 October Singapore VLSFO eased US$3/t but HSFO jumped US$60/t, and ENGINE said "bunker supply in Zhoushan remains tight", with lead times of about 11 days. Brent fell to US$104.10/bbl (ENGINE).

Manganese supply. Manganese ore shipments through Port Hedland in Western Australia rose 31.5% to 105,000 t in September, all to China, and were flat year on year (SteelOrbis).

Ports. Ferrochrome exports through Mozambique fell to zero in the June 2026 quarter (The Citizen). We found no new port or rail updates for Durban, Richards Bay, Maputo, Ngqura, Saldanha or Lüderitz published in the last 48 hours.

Policy and corporate. Tanzania's High Court struck out a roughly US$195 million claim by the Pula group against manganese and PGM producer African Rainbow Minerals, which ARM called "unfounded and fabricated" (Mining Weekly). We found no new export taxes, bans, AGOA, CBAM or mining law changes affecting chrome or manganese in the last 48 hours.

What This Means for African Exporters

Chrome sellers: Ore volumes and Stats SA output are strong, but more supply means buyers have choice. If Glencore-Merafe restarts Boshoek and Wonderkop in November, some ore may stay at home, so watch for tighter export availability of smelter-grade material. Price Supramax freight at current, firmer levels.
Manganese sellers: South African manganese output grew in August, and Australian shipments to China recovered in September. Expect steady competition into China and focus on reliability and logistics.
Buyers: Rising Indian ferrochrome capacity and a possible South African smelter restart point to more alloy supply, which supports negotiating leverage. Capesize rates are falling fast, but smaller vessels are not, so check ship size before assuming cheaper freight.
Investors: Watch whether the Glencore-Merafe restarts happen on time, IMFA's ramp-up towards 500,000 t/y, Afrochine's solar build and whether Mysteel's paywalled ore prices begin to show the effect of higher supply.

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