South Africa: Glencore’s ferro chrome production plunges 75% y-o-y in H1CY’26

• Q2 production recovers after restart of Lion smelter post lower power tariffs 
• South African chrome ore exports surge amid constrained smelting activity

Glencore’s ferro chrome production declined sharply by 75% y-o-y to 110,000 t in H1CY’26, compared with 433,000 t in the corresponding period last year, reflecting prolonged smelter curtailments in South Africa.

In contrast, the company’s chrome ore production remained largely stable, easing by 4% y-o-y to 1.64 mnt in H1CY’26 from 1.71 mnt a year earlier.

The steep decline in ferro chrome output was primarily due to smelting operations remaining under care and maintenance for most of the first half of the year. However, Glencore initiated a phased restart of operations at its Lion smelter, signalling a gradual recovery in production.

Reflecting this improvement, Q2CY’26 ferro chrome production surged to 97,000 t, compared with just 13,000 t in Q1CY’26, following the implementation of a negotiated electricity pricing agreement between the Glencore-Merafe Chrome Venture and Eskom. The agreement secures a fixed electricity tariff of 62 c/kWh for three years, providing greater cost certainty and supporting the restart of previously idled smelting capacity.

Meanwhile, South Africa’s chrome ore exports continued to strengthen amid lower ferro chrome production. Chrome ore exports rose 43% y-o-y to 11.7 mnt during January-May 2026, compared with 8.2 mnt in the corresponding period last year, highlighting the continued shift towards exporting chrome ore amid constrained domestic smelting activity.