Merafe Temporarily Suspends Lion Ferro-Chrome Smelter

Merafe Resources

Maintenance Shutdown Amid Weak Market Conditions

Merafe Resources has suspended operations at its Lion ferro-chrome smelter in South Africa for scheduled maintenance and planned rebuilds. The facility has a nameplate capacity of 720,000 metric tonnes per year, making it one of the largest in the region. The temporary suspension underscores both operational requirements and broader market headwinds affecting the ferro-chrome sector.

The company, which operates the smelter as part of a joint venture with Switzerland-based Glencore, has already halted production at its Boshoek and Wonderkop smelters earlier this year. Boshoek was idled on 1 May, followed by Wonderkop on 31 May, both due to difficult market conditions and weaker demand.

South African Ferro-Chrome Industry Under Pressure

The joint venture’s ongoing capacity reductions reflect sustained challenges across the South African ferro-chrome industry. The Lydenburg smelter was permanently closed in 2020, while the Rustenburg smelter was placed under care and maintenance in 2024. These moves highlight the structural oversupply, rising energy costs, and weaker stainless steel demand weighing on the ferro-chrome market.

As a result, producers face mounting pressure to balance production efficiency with profitability. Maintenance schedules, cost discipline, and potential future restarts will likely depend on global ferro-chrome price recovery and improvements in stainless steel demand, particularly from China.

The Metalnomist Commentary

Merafe’s latest suspension highlights the fragility of South Africa’s ferro-chrome industry, where high energy costs and market volatility remain persistent risks. With multiple smelters idled or closed, supply-side discipline may support future price stabilization, but global demand recovery will be essential for sustainable operations.