One of the more hotly debated aspects of the proposed tax is whether or not it can achieve its stated purpose, which is to support domestic ferro-chrome production
by fundamentally enhancing South African producers’ competitiveness over their international counterparts.
Amid a lack of clarity over the proposed tax, Fastmarkets examines how the South African ferro-chrome industry might be supported by such a measure, and whether this could boost domestic producers’ competitiveness as intended.
South Africa, with 4.9 million tonnes of ferro-chrome production capacity, is the world’s second-largest ferro-chrome producer after China.
The African nation produced 3.64 million tonnes charge chrome in 2019, down by 10% from 2018, data from International Chromium Development Association shows.
But the industry has struggled in recent years owing to a range of factors, including low prices, oversupply and rising production costs mainly caused by electrical and logistical issues.