Chrome Ore Fines Market - Forecast(2023 - 2028)

Chrome Ore Fines Market Overview

The Chrome Ore Fines Market size is estimated to reach a value of US$3.2 billion by the end of 2027 after growing at a CAGR of around 2.7% from 2022 to 2027. Chrome ore fines is a mineral belonging to spinel groups and are extracted from chromite. The mineral is found as cumulate rock in spinel peridotite of earth’s upper mantle near other spinel rocks like olivine and ophiolite. Chrome ore fines are rich in chemical and anti-corrosive properties and are used in various applications like as refractive material for steel making, as an oxidizing agent for leather items and also it is used in plating chromium on metal objects. Hence, due to such unique applications, chrome ore fines are highly used in sectors like automotive, aerospace, steel, paints & coatings and glass sector. Factors such as increasing stainless steel production, growing production of automotive and an increase in production volume of glass are expected to drive the growth of the chrome ore fines market. However, the environmental pollution caused on account of chromite mining can limit chromite production, which can negatively impact the quantity of chrome ore fines that are extracted from chromite. This can hamper the growth of the chrome ore fines industry.

COVID-19 Impact

Chrome ore fines is mainly used as refractive material in the production of stainless steel and glass and also due to their anti-corrosive properties, it is used in chrome plating on automotive parts so as to protect them from corrosion. Hence, the global lockdown implemented to prevent the widespread of COVID-19, disrupted the activities of various manufacturing sectors like steel, glass and automotive. For instance, according to International Stainless-Steel Forum, in the first nine months of 2020, stainless steel melt shop production was 36.7 million tonnes compared to 39.8 million tonnes showing a 7.8% decrease. Also, according to Glass Alliance Europe, in 2020, global glass production was 35.85 million tonnes showing a 2.6% decrease compared to 2019. Further, according to the International Organization of Motor Vehicle Manufacturers, in 2020, global motor vehicle production was 77.7 million units showing a 15.6% decrease compared to 2019. The decrease in productivity of the steel, glass and automotive sector reduced the usage of chrome ore fines as refractive materials in steel & glass making and for chrome plating of automotive parts. This negatively impacted the growth of the Chrome Ore Fines industry.

Report Coverage

The “Chrome Ore Fines Market Report – Forecast (2022 – 2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Chrome Ore Fines industry.

By Sources – Stratiform Deposits, Podiform Deposits and Beach Sands.
By Application – Refectory Material, Pigments (Glass, Glazes and Paints), Plating (Decorative and Hard Chrome), Oxidizing Agent and Others.
By End-use Industry – Aerospace (Commercial Aviation, Military Aviation and General Aviation), Automotive (Passengers Vehicles, Light Commercial Vehicles and Heavy Commercial Vehicles), Mining, Paints & Coating, Steel Industry, Glass Industry and Others.
By Geography – North America (the USA, Canada, Mexico), Europe (the UK, Germany, France, Italy, Netherland, Spain, Russia, Belgium, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, Rest of South America), Rest of the World (Middle East, Africa).

Key Takeaways

• Asia-Pacific dominates the chrome ore fines industry as the region consists of countries like China and India which are leading producer of steel and automotive that majorly uses chrome ore fines.
• Chrome ore fines have high applicability in the aerospace sector where it is majorly used for chrome plating jet engines which allows them to work under high temperature and chemically oxidizing environment.
• Improvement in living standards and rapid urbanization has led to increasing in demand for new automobiles which has provided growth opportunities for the chrome ore fines industry in the automotive sector.

Figure: Asia-Pacific Chrome Ore Fines Market 2021-2027 (US$ Billion)

Chrome Ore Fines Market Segment Analysis – by Sources

Stratiform deposits held a significant share in the chrome ore fines market in 2021 and it is expected to grow with a CAGR of around 2.1% during the forecast period. In stratiform deposits, chrome ore fines are found in crystalline form near olivine in the earth’s upper mantle. The chrome ore fines found are majorly used in different sectors like steel, glass, aerospace, etc. Hence, as refractive material it is used in stainless steel making, as a pigment, it is used in paints and also due to its hardness and anti-corrosive properties, it is used in making aircraft engines. Growing productivity in steel, glass and paints sectors has positively impacted the usage of chrome ore fines. For instance, according to International Stainless-Steel Forum, in 2019, global stainless steel production was 52.2 million tonnes compared to 50.7 million tonnes in 2018 showing a 3% increase. Also, according to Glass Alliance Europe, in 2019, glass production in the EU was 36.8 million tonnes compared to 35.2 million in 2017 showing a 4.5% increase. Further, according to General Aviation Manufacturers Association, in 2021, aircraft deliveries were valued at $25.2 billion showing an increase of 10.2%. Such an increase in production and revenue level of steel, glass and aerospace sectors will create more usage for chrome ore fines in them resulting in positive growth in the Chrome Ore Fines industry.

Chrome Ore Fines Market Segment Analysis – by End-use Industry

The steel industry held a significant share in the chrome ore fines market in 2021 and it is estimated to grow with a CAGR of around 3.2% during the forecast period. Chrome ore fines found near olivine and ophiolite is a very essential industrial metal and due to its hardness and resistance to corrosion, it is majorly used in the manufacture of stainless steel. The increase in the production level of stainless on account of growing advancements and high demand from major end users of steel has positively impacted the usage of chrome ore fines. For instance, according to International Stainless Steel Forum, in the first nine months of 2021, stainless steel production was 43 million tonnes showing a 16.9% increase compared to the 2020 same period. Hence, with such an increase in the production level of stainless steel, the amount of chrome ore fines used in stainless steel production will also increase. This will provide a positive impact on the growth of the chrome ore fines industry.

Chrome Ore Fines Market Segment Analysis – by Geography

Asia-Pacific held the largest share in the chrome ore fines market in 2021 with a share of over 37%. Economies like China and India consist of major end users of chrome ore fines like steel, automotive and paints. Chrome ore fines are used as refractive material in stainless steel making, as plating material on automotive parts like engines and as a pigment in paints. The growing production capacity of such sectors on account of economical development has positively impacted the usage of chrome ore fines in these sectors. For instance, according to the International Organization of Motor Vehicle Manufacturers, in 2021, Asia held a 50% share of global motor vehicle production with China producing 26 million units and India's 4.4 million units. Further, according to China Petroleum and Chemical Industry Federation, the paints and coating production in China in April 2021 was 27 million tons which was forty times more than the amount produced in 2002. Such an increase in the production capacity of the automotive and paints sector in economies like China and India will create more usage of chrome ore fines in them, providing a boost to the chrome ore fines industry.

Chrome Ore Fines Market Drivers

Increase in Stainless Steel Production

Chrome ore fines which are found near spinel peridotite in the earth’s upper mantle have high heat stability, hardness and resistance to corrosion due to which it has high usage as refractive material for making stainless steel that has high toughness and chemical resistance. The growing usage of stainless steel in sectors like automotive, construction and household appliance has led to an increase in production levels in order to cater to the growing demand. For instance, according to International Stainless Steel Forum, in 2021, stainless steel production was 56.3 million tonnes showing a 10.6% increase compared to 2020. Such an increase in production volume of stainless steel on account of growing demand will increase the usage of chrome ore fines as refractive material. This will boost the growth of the chrome ore fines industry.

Growing demand for Automotive

Chrome ore fines extracted for chromium has rich anti-corrosive properties due to which it is used for chrome plating of automotive components such as engine parts and exhaust pipe. The increase in production volume of automobiles on account of growing demand for new vehicles and due to rapid urbanization has positively impacted the usage of chrome ore fines. For instance, according to the International Organization of Motor Vehicle Manufacturers, in 2021, global motor vehicle production was 80.1 million units compared to 77.7 million units made in 2020, showing a 3% increase. Such an increase in automotive production will lead to more usage of chrome ore fines for chrome plating of automotive parts. This will boost the growth of the chrome ore fines industry.

Chrome Ore Fines Market Challenge

Negative Impact on Environment

Chrome ore fines are extracted from chromium, whose mining can toxically affect the environment. Chromium mining leads to soil leaching which negatively impacts the soil ecology and decreases the functionality of soil microorganisms. This impacts the nutritional uptake of plants which affects their growth. Moreover, dust particles created during mining contaminate surface water and groundwater. Hence, such a negative effect on the environment account of chromium mining can limit the production of chrome ore fines in order to reduce the environmental damage. This can hamper the growth of the chrome ore fines industry.

Chrome Ore Fines Industry Outlook

The companies to develop a strong regional presence and strengthen their market position, continuously engage in mergers and acquisitions. The top 10 companies in the Chrome Ore Fines market are:

1. Lanxess Chrome Mining Ltd.
2. Samancor Chrome Ltd.
3. Assore Ltd.
4. Jubilee Metals Group Plc.
5. Accure Group
6. Clover Alloys
7. Delima Corporation
8. Pacific Exim Limited
9. LKAB Minerals Limited
10. Euro Minerals Pvt. Ltd.

Recent Developments

• In 2021, Tata Steel Mining Limited and Jindal Stainless Limited signed a memorandum of understanding to jointly utilize chrome ore locked up in the boundary between their mines located in Sukinda of Jaipur district of Odisha.
• In 2021, Tharisa acquired 100% of the shareholding of Salene Chrome Zimbabwe for US$3 million and this acquisition will enable Tharisa to increase its chrome ore production.
• In 2021, Pioneer Metal Finishing LLC, a portfolio company of Aterian Investment Partner acquired Indianhead Plating Inc. which is a leading provider of chrome plating in the Upper Midwest in heavy equipment and general industrial end markets.

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