Glencore to Restart South African Ferro-Chrome Smelter in February

Glencore’s Ferro-Chrome Smelter Restart in South Africa

Switzerland-based Glencore announced it will restart the Lion ferro-chrome smelter in South Africa in February 2026. The smelter, with a 720,000 t/yr capacity, becomes Glencore and local partner Merafe’s sole operational ferro-chrome facility. Previously, weak European steel demand, lower-cost Chinese ferro-chrome, and high electricity tariffs forced closures of Boshoek and Wonderkop smelters.

The restart comes after the South African government proposed electricity tariff adjustments for industrial users. However, Merafe emphasizes that long-term viability depends on finalized tariff reforms. Meanwhile, retrenchment notices affect 1,200–1,400 workers, becoming binding if no solution is agreed with authorities.

The South African ferro-chrome sector faces broader challenges. Samancor Chrome has warned of potential layoffs affecting up to 2,500 employees next year. Industry experts estimate up to 300,000 direct and indirect jobs in smelting and related heavy industries could be at risk without a sustainable electricity solution.

Market and Industry Implications of the FeCr Restart

The Lion ferro-chrome smelter restart signals gradual stabilization in South Africa’s FeCr supply despite market pressures. Resuming production helps meet global stainless steel alloy demand and counterbalances imports from low-cost Chinese producers. Meanwhile, power cost reforms remain critical to prevent future disruptions and job losses in the local ferro-chrome sector.

Glencore’s strategic move also reflects a trend toward consolidating production at fewer, more efficient smelters. This approach can improve operational resilience, enhance supply chain stability, and strengthen South Africa’s position in the global ferro-chrome market.

SuperMetalPrice Commentary:

Glencore’s restart of the Lion smelter underscores the delicate balance between market demand, energy costs, and industrial sustainability. South Africa’s ferro-chrome industry remains vulnerable to electricity pricing and global competition. Investors and stakeholders should monitor government reforms closely, as long-term tariff adjustments will determine regional production stability and employment security.