Search "chromite price per ton" and the results are aggregator tables quoting a single undated number with no grade, no form, and no freight terms — a figure no smelter would transact on. Chrome ore has no exchange contract: the LME lists neither chrome ore nor ferrochrome, so a per-ton number only means something once four levers are attached to it — Cr₂O₃ basis, physical form, Cr:Fe ratio, and the freight leg. In our chrome marketing from Pakistani origins, the first correction we make to inbound enquiries is converting "what is your price per ton" into "price at which stated basis" — this decoder walks the conversion, building on the spec-side detail in our chrome ore grades buyer guide.
What sets the chromite price per ton?
The working reference is the weekly Fastmarkets UG2 chrome ore index, specified basis 42% Cr₂O₃ CIF China, alongside a lumpy index basis 40%. A cargo's price is built from the index reference plus or minus four adjustments: Cr₂O₃ units versus basis, physical form, Cr:Fe ratio, and the freight basis of the sale.
| Lever | What it is | How it moves the quote |
|---|---|---|
| Basis grade | Index specification: UG2 concentrate basis 42% Cr₂O₃; lumpy basis 40% — both CIF China | The reference point every adjustment starts from |
| Cr₂O₃ units | Assayed grade above or below basis | Pro-rata per-unit premium or discount |
| Form | Direct-charge lumpy vs concentrate/fines needing pelletising or DC-arc smelting | Lumpy carries a structural premium |
| Cr:Fe ratio | ≥ 1.6 for charge chrome, ≥ 2.0 for high-carbon ferrochrome | Higher ratio earns a premium — chrome units pay, iron units don't |
| Freight basis | CIF China index vs FOB-origin netback | Netback moves with freight even when the index is flat |
Convert Every Quote to a Basis Before Comparing
The per-unit arithmetic is a convention, not a fixed formula — exact normalization factors are contractual — but the shape is simple: assume an index print of 300 at basis 42% (an illustrative figure, not a quote), and a 44% Cr₂O₃ cargo negotiates from roughly 300 × 44/42 ≈ 314 before form and Cr:Fe adjustments. The discipline matters in the other direction too: two offers at the same headline per-ton number, one 40% concentrate and one 44% lumpy, are separated by every row of the table above. Comparing offers at their stated per-ton prices without converting to a common basis is the chrome-ore version of the mistake we documented for copper in the assay-to-invoice settlement walkthrough — the headline number is where analysis starts, not where it ends.
Why does UG2 trade at a discount to metallurgical lumpy?
Because UG2 is a co-product with a processing handicap. UG2 chromite concentrate arises from platinum-group-metal mining on South Africa's Bushveld UG2 reef — a chromitite layer hosting the PGMs — where chrome-recovery circuits upgrade the stream to roughly 40–42% Cr₂O₃ (sources: ICDA; SAIMM). As fine concentrate it cannot charge a conventional furnace directly: it must be pelletised and sintered, or fed to DC-arc smelters, while metallurgical lumpy goes straight into the burden. That agglomeration step, plus UG2's generally lower Cr:Fe, is the structural discount — and since South Africa accounts for roughly 40–45% of world mine production (USGS Mineral Commodity Summaries 2026; ICDA), UG2 volumes anchor the index while lumpy from Turkey, Pakistan, and Albania trades against it at premiums. Where the demand behind all of this comes from is mapped in our chromite demand growth analysis.
How does the Cr:Fe ratio change the price?
The smelter pays for chrome units and inherits the iron, so the ratio prices ferrochrome yield — and the threshold depends on the product being made: charge chrome runs at Cr:Fe ≥ 1.6, high-carbon ferrochrome at ≥ 2.0. Our metallurgical-grade chrome ore is specified at Cr₂O₃ 42–48% with Cr:Fe ≥ 2.5:1 — the high-ratio end that earns the premium — with chrome concentrates covering the beneficiated lane. One origin caution from our own market: "Pakistani chromite" is not one grade — Muslim Bagh, Waziristan, and Lasbela material varies from roughly 36% to 52% Cr₂O₃ depending on district and mining method, which is exactly why quotes must reference the assay, not the origin.
Price the Freight Leg, Not Just the Ore
The indices are CIF China; a seller quoting FOB Karachi is quoting the index minus freight, so the netback moves with the freight market even on a flat index week — chrome ore logistics planning is part of the price, not an afterthought, which is why the freight leg is priced inside our indications rather than added later. And keep the customs line straight: chrome ore ships under HS 2610.00, ferrochrome under HS 7202.41/49/50 — different products, different prices, different duty treatment. A "chrome price" that does not say which one it is refers to neither.
Where Chromite Price Reads Go Wrong
- Quoting a per-ton number without basis, form, and freight terms. It cannot be transacted on and cannot even be compared.
- Comparing a UG2 index print to a lumpy offer. Different basis grade, different form, different furnace economics — convert first.
- Citing "the LME chrome price." No LME (or any exchange) contract exists for chrome ore or ferrochrome — and even the decades-old quarterly European charge-chrome benchmark is gone, discontinued from June 2024 when the Glencore-Merafe/Aperam settlement ended (source: Merafe via Mining Weekly, 2024-05-20). The weekly indices are the price discovery.
- Using a ferrochrome price as an ore price. HS 2610.00 versus HS 7202 — the smelting margin between them is the whole ferrochrome industry.
- Trusting undated aggregator price tables. The indices publish weekly; a table with no date and no basis is decoration.
- Comparing origins without the Cr:Fe. At the same Cr₂O₃, a 2.5:1 cargo and a 1.6:1 cargo make different ferrochrome — and different money.
Next step: Review metallurgical, refractory, and foundry chrome ore grades, or request an FOB Karachi or CIF delivered-cost indication quoted at a stated Cr₂O₃ basis with the assay pack and Cr:Fe on the face of the offer. The Minerals & Mining division lists the full portfolio.
Additional Market Context
The working references: the Fastmarkets weekly chrome ore indices (UG2 concentrate and lumpy, CIF China) for spot direction; index-linked European contract structures — the quarterly charge-chrome benchmark was discontinued from June 2024 (Merafe announcement); CRU's ferrochrome service for forecasts; Asian Metal for Chinese port stocks; ICDA quarterly statistics and the USGS Mineral Commodity Summaries 2026 chromium chapter for the production baseline. This decoder deliberately quotes no index levels — the assessments publish weekly and any number printed here would be stale within days.
Last reviewed: 2026-08-05. Pricing structure per the named index specifications and ICDA/SAIMM sourcing above; the illustrative arithmetic is labelled as convention. Pull the live Fastmarkets prints at quote time — or ask us for an indication against the current week's index.
