European Cr metal market: Key trends and future outlook

Chrome metal (Cr metal) is a high-purity form of chromium (Cr) typically used in high-performance applications (superalloys, tool steel and other specialty materials) due to its exceptional corrosion resistance, hardness, and high melting point. 

Chromium metal is produced in different purity levels to meet the needs of various applications. These purity levels are primarily categorized based on their production processes and impurity content. The main grades include:

1. Airmelt Grade Chromium (AM Cr)

• Purity: Typically around 99.2%–99.5% chromium.
• Production: Produced via aluminothermic reduction, refined under air or inert atmosphere
• Applications:
  • Suitable for air-melted alloys, where slight impurity levels are tolerable.
  • Commonly used in stainless steel and other less demanding alloys.

2. Vacuum Grade Chromium (VG Cr)

• Purity: Higher, typically 99.8%–99.95% chromium.
• Production: Aluminothermic or electrolytic chromium refined in a vacuum furnace, minimizing impurities like oxygen, nitrogen, and carbon.
• Applications:
  • Critical in superalloys for aerospace, gas turbines, and high-temperature components.
  • Ensures optimal performance in highly demanding environments.

3. Electrolytic Chromium

• Purity: Often exceeds 99.95% chromium.
• Production: Obtained through electrolytic refining, ensuring ultra-high purity by removing metallic and non-metallic impurities.
• Applications:
  • Used in research, electronics, and applications requiring extreme purity levels.

4. Special Grades

• Low Nitrogen Chromium:
  • Specifically tailored for applications sensitive to nitrogen, such as certain vacuum-melted alloys.
• High Purity Chromium:
  • Designed for niche applications like electronics and optics, where even trace impurities can affect performance.

The production of chromium metal is concentrated in a few countries and among few companies that dominate the market. 

Total shipments of Cr metal to the EU in 2024 have exceeded 2023 levels, reaching 11,422 tonnes from January to October 2024, compared to 11,933 tonnes for the entirety of the previous year. While the primary suppliers of Cr metal to the EU, namely the Russian Federation and China, remained unchanged, notable shifts in their respective market shares were observed.

During the first 10 months of 2024, imports of Cr metal from China surged substantially, reaching 3,304 tonnes, a sharp increase from the 1,982 tonnes recorded for the whole of 2023. As a result, China’s share of total EU chromium metal imports rose by 12.3 percentage points, climbing to 28.9%.

In contrast, imports from Russia totalled 6,382 tonnes in the first 10 months of 2024, showing little change from the corresponding period in the previous year (7,692 tonnes for the full year 2023). As a result, Russia’s share of EU chromium metal imports fell to 55.9%, down from 64.5% in 2023.

This trend has fuelled ongoing market discussions about the potential repackaging of Russian material as Chinese to bypass possible sanctions against Russia, although such claims cannot be officially verified. “You can only be sure about repackaging if someone confirms that the material has been repacked,” an international trader remarked. “If the drums are marked as originally Chinese, then it’s “Chinese”. If they are in neutral bags or drums, it becomes much trickier. I’ve heard of traders buying Russian material and requesting suppliers to repack it into neutral bags. It’s clear what their intentions are in such cases.”

Meanwhile, trading activity on Metalshub experienced remarkable growth in 2024, driven by an increasing number of European companies turning to the software for their procurement.

In 2024, the European chromium metal market remained under pressure from a steady supply of competitively priced material from Russia, leaving suppliers of Chinese and European chromium with no choice but to rely on lowering prices to remain competitive.

Despite the growing reluctance among certain buyers to source Russian material—motivated more by ethical considerations than regulatory constraints, given that chromium metal has yet to be included in any EU-imposed sanctions package—the supply of Russian material in the European market remains significant. Anticipating potential disruptions, trading companies strategically cleared material in advance and maintained substantial inventories to ensure continuity. As a result, the impact of aggressive Russian pricing is expected to persist, compelling Chinese suppliers to adapt their strategies to secure deals and maintain market presence.

However, the evolving dynamics of Western sanctions against Russia—such as the inclusion of the Novotroitsk Plant of Chromium Compounds in the United States’ latest sanctions package—have further tightened the outlook for suppliers handling Russian-origin material. European companies do not rule out the possibility that future EU sanctions packages may include chrome metal, with the potential imposition of duties also remaining a plausible scenario.

In addition, the anticipated imposition of a 10% duty in the US, announced by President Trump and set to take effect from February 1, would increase the total tariff on Chinese chrome metal imports to 38.1%. This is expected to exert significant pressure on Chinese suppliers, likely pushing them to adopt greater flexibility in their pricing and offerings to the European market.

Sources:

Official company websites & ISSB