Current Support Brief
SOVIET SALES OF CHROMITE TO THE FREE WORLD CONTINUE TO INCREASE
CIA HISTORICAL REVIEW PROGRAM RELEASE AS SANITIZED
CIA/RR CB
3
CENTRAL INTELLIGENCE AGENCY Office of Research and Reports
CONTINUE TO INCREASE
The USSR, the world's leading producer of chromite, ib becoming an increasingly important source of supply for consumers of this industrial raw material in the Free World. From an averageetric tonsear. Sovietof chrome ore in Frco World markets climbed to moret per yearnd may increase furthern view of quantities specified in known trade agreements and purchase contracts covering this period. The Soviet chromite being sold to the Free World is metallurgical-grade ore that is used in producing ferrochrome alloys or chromium metal. Other grades of chrome ores are used as raw materials in refractories and in chemical industries. The growing volume of Soviet exports to the Free World, andecent salelS importer for delivery, have caused considerable concern in Turkey and Rhodesia, both important producers of metallurgical-grade ores.
1. Supply Position
The USSR has been the world's largest producer ofaving previously held this position in some years immediately after World War II. Soviet production, which averagedear, rose toillion mtutput increased from approximatelyercent of world productionoercent, as can be derived from data in Table 1. Production of metallurgical-grade ore2 is estimatedillion mt and. if the Seven Year Plan is fulfilled, could increaseillion mt
An increasing proportion of Soviet production is being exported. From an average ofear, total exports haveto moret. or from aboutercent of production lo more thanercent. Soviet exports of chromite are shown in Table 2.
The USSR is Ihe principal supplier of metallurgical-grade chromite for the other countries of the Sino-Soviet Bloc. Albania, the only other important producer of chromite in the Bloc, exports significantto these countries, but Albanian ores are of poorer quality,an average of onlyercent chromic oxide, and are less suitable for metallurgical use. Soviet shipments to the Bloceneral upward trendut declined abruptlyhen there were no deliveries to China. Exports to China0 had amounted0 mt. Apparently. Communist China has turned to Albania for its supplies, imports from that country having increased from0 mt0 to an estimated total0 mt
2. Exports to the Free World
Soviet exports of chromite to countries of the Free Worldercent8 and1 representedercent of total exports. Exports to ths Free World also have increasedercent of production in the Free Worldo more thanercent Inasmuch as the chromite exported by the USSR is primarily of metallurgical grade, the quantities shipped to Free World markets would represent substantially larger percentages of Free World production of ores of this grade.
Although Soviet ore has been purchased intermittently by consumers elsewhere in the Free World, the largest markets have been WestSweden, France, and Japan, as shown in Table J. Of theimports of all grades of chromite by West Germany, France, and Sweden, the quantities imported from the USSR rose from9 tooercent. Japanese imports of Soviet ore, whichercent of total importsncreased toercent. In each case the Soviet share of total imports of metallurgical-grade chrome ore by these countries generally would have been significantly higher. Present trade agreements indicate that shipments to these countries will remainigh level. The USSR also has trade agreements with Austria, Italy, and Norway, which in each case provide for exports exceeding the amounts shipped to these countries in recent years. Under these agreements, covering the. Austria is to0 mt per year.0 mt. and0 mt.
The latest known contract lor the sale of Soviet chromite in the Free World, and one involving the largest tonnage sold by the USSR in recent years, was concludedS importer early3 and reportedly provides for the dellvery of, ono mt of metallurgical-grade ore. This contract anticipates the largest shipments. when Soviet exports to the US averagedearn amount equal to nearlyercent of total US imports ofore in those years. ZJ Actual shipmentswillt inasmuch as amounts remain to be delivered3 on contracts concluded In the fourth quarterontracts reportedly were signed for the deliveryft. 1/ Actual US imports of Soviet ore2 amounted tot. of which moret were received in the lastof the year. If it is assumed that shipments on the new contract are spaced evenly. US receipts3 couldt, or the equivalent of nearlyercent of annual consumption of chromite by the US metallurgical industry.
3. Pricing of Soviet Ores
According to the limited information available, the ores being offered for export to countries of the Free World are priced attractively,in view of their high quality. Soviet ore received in the US2 containedercent chromic oxidehrome to iron ratio ofnd reportedly waa sold in the US market forer rnt. In comparison, delivered priceser mt have been quoted in trade journals for Turkish and Rhodesian lump orestandard grade ofercent chromic oxidehrome to iron ratioo 1. Quoted prices for these ores, however, may not accurately reflect actual prices charged to consumers. The USSR also has offered high-grade fines in the US marketelivered price of.er mt. which also is below published prices for comparable ores. These fines, used in combination with lump ores in production of ferrochrome, are said to be limitedfor use in making low-carbon ferrochrome becauseighcontent. At the low sales price, however, they represent an attractive alternative to Rhodesian metallurgical fines, which for some time have been quoteder mt.
Table I
Estimated World Production of
Bloc
Thousand Metric Tons
-
MIS
I'm?
N-A-
a. im total does not include small quantities of chromite believed to be
produced in Bulgaria, Rumania,Vietnam.
Table 2
Soviet Exports of
Thousand Metric Tons
World
110
158
215
a. Totals reported by the USSR include shipments for which countries of destination arc not shown.
Table 3
o. HZ . I Soviet foreign trade handbook. Data
Inor. inthe^ofthe
b. Totals reported by the USSR include shipment, for which countries of destination are not shown, d. Reported by the US Bureau of Kin*..
tric iS?nd include3w metric tons remainingontract concluded
Soviet Exports of Chromite. by Recipient Country
exportB
b/
b/
Free World
Japan
Sweden
West Gernany
US
Other
a ia6
31
6
4
0
/
St
80
.
.
/ 50
:?
24
14
tf 60
e/
6c
e/ 60
Bloc
China Ctechoslovakia East Germany Poland
lb 12
27
0 2d
9 5b
48
b
30
N.A.
43
. bO
30
N.A. 45
30
N.A.
50
Original document.
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