In a media press release to Mining Weekly, Merafe stated that the ongoing pressure from the prolonged economic downturn in the global ferrochrome market led to a profit decline of 233 million rand over the six months ending June 30, with ferrochrome sales dropping by 55% to 76,000 mt and chrome ore sales falling by 14% to 217,000 mt, while sales of platinum group metals increased by 9% to 7,112 ounces.
The South African ferrochrome industry is facing high energy costs and competitive pressure from China, which led Glencore-Merafe to suspend its ferrochrome smelting operations in Q2 this year. Additionally, there was a decline in demand for chrome ore in H1 2025. Despite the ongoing challenges related to energy supply and global competition, the South African government's recent attempts at policy intervention and incentives for beneficiation have brought a relatively optimistic outlook for the development of the entire ferrochrome industry, particularly for Merafe's medium and long-term ferrochrome business.
As a strong chrome enterprise, Merafe's chrome business needs to adapt to potential changes in domestic demand in South Africa while continuing to pay attention to the strong influence of the Chinese market. Both segments of the business will benefit from further stabilization of energy supply and the implementation of proposed regulatory changes.
Glencore-Merafe will continue to collaborate with key stakeholders to seek sustainable solutions, particularly for its smelting operations.
Source: https://www.miningweekly.com/article/south
