[Market Trends] Supply and Demand Status and Our Response Strategy Following China's Chromium Strategic Stockpiling
The State Council of China included 24 minerals, including chromium, in its National Mineral Resources Plan (2016-2020), including strategic minerals, and has maintained and strengthened this list to this day. With the revised Mineral Resources Law, which will take effect in July 2025, the Chinese government will begin to further specify national control over strategic mineral resources, further increasing its influence over the import, export, and domestic distribution of these resources. In particular, the recent large-scale stockpiling of chromium, designated as a national strategic resource, by the Chinese government is expected to have significant repercussions on the global chromium supply chain. To ensure a stable supply in the domestic distribution market, we share our analysis of the current situation and our future response plans.
1. Market Analysis: Why is chrome supply and demand becoming unstable?
As the world's largest consumer of chromium and producer of ferrochrome, China has recently been strengthening its market control for the following reasons:.
– Aggressive stockpiling by the Chinese government: To prepare for the US-China trade conflict and global supply chain uncertainty, the Chinese government is absorbing large quantities of chromium stocks. This is directly reducing the available supply on the international market.
– Resource Security Legislation: China's revision of its Mineral Resources Law strengthened its authority to control the import and export of chromium. This structure has been transformed to allow for export restrictions to be implemented at any time, if necessary.
– Increase in supply cost: The recent weakening of the Korean Won, logistics disruptions in ore producing countries such as South Africa, Chinese government stockpiling, and rising production costs of chrome-related products are expected to lead to an increase in unit product prices.
2. Response Strategy as a Chrome Importer and Distributor
To ensure a stable and timely supply of high-quality products to our customers, we will implement the following strategic measures.
① Preemptive inventory securing and safety stock increase
To prepare for sudden export suspensions or price spikes due to China's stockpiling, we will increase our safety stock levels by 20-30% compared to normal times. Regardless of market volatility, we will prioritize securing inventory to ensure our customers' production is not disrupted.
② Supply chain diversification
To manage our dependence on Chinese products, we are strengthening partnerships with alternative suppliers, including India and Kazakhstan. We are also establishing a decentralized procurement system to minimize the impact of policy changes in specific countries on domestic distribution prices.
③ Mitigating price fluctuation risk
To alleviate our customers' cost burden caused by rapid price fluctuations, we share real-time raw material market monitoring data to help them determine the optimal purchasing timing.
As the chrome market becomes more volatile, collaboration with a reliable partner becomes increasingly crucial. We strive to support your stable production operations through thorough market analysis and proactive response.
Please check the link below for information on our Chromium-related products. For further inquiries or individual consultations, please feel free to contact us at any time. (070-4010-7450)
→ Chromic acid product details page
→ Chromic phosphate product details page
→ Chromite product details page
→ Chromium chloride product details page
→ Chromium fluoride product details page
→ Chromium nitrate product details page
→ Chromium phosphate product details page
→ Sodium bichromate product details page