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Chromium metal is a valuable resource that is used in a variety of industries. Its properties make it an ideal material for a wide range of applications. We will discuss the current market prices for chromium metal and provide you with some tips on where to find the best deals.
The cost of chromium metal’s main component and formation over time can vary greatly depending on supply & production capacity; transportation costs (like shipping or freight); demand factors such as world political changes which affect pricing for certain products containing this element specifically.
What is chromium metal and what are its uses?
Chromium is a lustrous, brittle, hard material that can be polished to a high mirror finish. It resists tarnishing in the air and oxidizing at elevated temperatures. The element is widely used as a plating on other metals to provide a decorative finish or protective coating. It is also used as an alloying agent in steel manufacturing.
The main uses for chromium metal are in the production of stainless steel and other alloys, as well as chromium plating for electroplating plants and as a catalyst for synthetic rubber production.
The Three Factors That Affect the Price of Chromium Metal
Chromium metal is most valuable when it comes to its use in the production of stainless steel. For chromium to be used in this way, it must be combined with high carbon to create what is known as ferrochrome. Ferrochrome is an alloy that contains between 50% and 70% chromium by weight and is used in the production of stainless steel.
The price of chromium metal on the global market is affected by three main factors: supply and demand, the cost of production, and geopolitical factors.
Supply and Demand
The price of any commodity on the open market is largely determined by supply and demand. If there is more demand for a product than there is available supply, then the price of the product will increase.
Similarly, if there is more available supply than there is demand, then the price will decrease.
The supply of chromium metal is largely determined by China, as China accounts for approximately 80% of global chromium production according to figures from the US Geological Survey. The remaining 20% of global chromium production takes place in Kazakhstan, South Africa, India, Turkey, Russia, Albania, and Brazil.
However, it should be noted that most Chinese chromium producers are state-owned enterprises, which means that they are not always motivated by profit. Instead, they may prioritize other factors such as employment levels or meeting government targets. This can lead to wide swings in Chinese chromium output and can cause disruptions in the global chromium market.
On the demand side, the largest consumers of chromium are China (40%), Europe (30%), and North America (20%).
The main use for chromium material is in the product of stainless steel (which itself has a wide range of applications). Other uses for chromium include electroplating, pigments & dyes, refractory materials, and chemicals.
Production Costs
The cost of producing one tonne of ferrochrome has increased from $1800 in 2015 to $5,400 in 2022 due to higher costs for energy (accounting for 30% of total costs), labor (20%), chrome ore (15%), iron ore (15%), carbon materials (10%), and consumables (5%).
These higher costs have been caused by a combination of inflationary pressures and disruptions to supply chains due to political instability in countries such as South Africa (a major producer of both chrome ore and ferrochrome).
Geopolitical Factors
Geopolitical factors can have a significant impact on both the supply and demand sides of the equation when it comes to commodities like chromium material.
For example, sanctions against Russia or China could lead to disruptions in their respective output levels or export activities.
Similarly, an increase in tensions between two countries could lead to trade disputes that lead to higher tariffs being placed on imports/exports of certain commodities. These sorts of events can have a direct impact on prices in the global marketplace.
Where can you find chromium metal for sale?
How does one get the best deals?
Jicichemical is a professional supplier and manufacturer of chromium metal. They provide high-quality materials at competitive prices, with quick shipping from the factory to overseas markets. In the 2022 year, the wholesale price of one ton is about US$13800 from Jici. More quantity with better discount again.