According to market expert Heinz Pariser, world chromite reserves are roughly 7,600mt, of which 5,500mt are found in South Africa, some 930mt in Zimbabwe and Kazakhstan ranks 3rd with about 320mt, 4.2% of total world reserve. Global chromite ore production reached about 19.3mt in 2005, compared to 13.5MT in 1995. Kazakhstan forms a specific group with South Africa and India which is characterised as having ‘large reserves of good quality ore’.  The combined output of this group in 2006  was 14.8mt, or 76.7% of total global production, with an annual growth rate of 5.7%.

The combination of high demand, sharp rises in the costs of freight, energy and chromite raw materials were responsible for ferro-chrome prices reaching their highest levels for ten years in 2005 at US$0.72-74/lb. This represented a successful recovery from early 2002 when prices of US$0.27-29/lb were at their lowest level for 30 years. This recovery in the ferro-chrome market was primarily due to the growth in stainless steel production, which is forecast to maintain strong growth through the 2000s, led by Asian demand.

Taking into account stainless steel demand, availability of stainless steel scrap, supply and demand for charge chrome and the exchange rate for the South African Rand, Pariser’s price forecast for 48% Cr2O3 Kazakhstan chrome ore from 2006 to 2015 should lie between US$154 and US$224 per tonne free at border, Kazakhstan. The outlook for the chromium metal market is for increasing growth over the next five years. Demand was severely depressed between 2001 and 2003 as the aerospace industry suffered its worst recession in 30 years and low levels of economic activity reduced the demand for super-alloys in industrial applications. The upturn in the aerospace and industrial turbine markets has been reflected in the higher chromium metal demand since 2004. Consumption is estimated to have risen by 15% in 2004 and could increase by a further 25% to 25,000t per year in the late 2000s.