Companies need to rethink their position on China and change their mindsets to better understand this crucial market for the mining industry to plan a successful strategy, according to strategic market intelligence firm China Market Research Group MD Shaun Rein.

He was addressing about 170 delegates at the International Chromium Development Association’s (ICDA’s) Chromium 2016 conference in Shanghai, China, earlier this month.

Rein, who is also the author of The End of Cheap China and The End of Copycat, pointed out that many people underestimated the rise of innovation in China. “The country is changing because of rising labour and real estate costs; therefore, margins are being squeezed and local companies are looking to move up the value chain.”

Chinese consumers wanted high-quality and added-value products made by the Chinese for the Chinese, with the Chinese consumer base “getting more and more sophisticated”, he remarked.

Global business-to-business trade platform China Ferroalloy net chromium product manager Wu Limei highlighted in her presentation at the conference that these thoughts on the changing structure of Chinese society could easily be applied to the chromium industry, as China was not yet ready to buy ferrochrome from abroad and continued to secure chrome ore supply to locally produce its own ferrochrome and stainless steel.

ICDA market research analyst Loïc Racon provided an in-depth analysis of the latest supply-demand balance and trends in the chromium sector. He said the chromium market was “awakening” and that momentum would continue to increase, owing to Chinese demand.

Other presentations challenged delegates about the London Metal Exchange’s (LME’s) significance to the ferrochrome industry. This was an important part of the conference, as the LME is regarded as the “world centre” for industrial metals trading.

Meanwhile, ICDA deputy secretary-general Sheraz Neffati told Mining Weekly that the ICDA was proud to have been the voice of the chromium industry in that all sectors were represented in the programme at the conference – from mining-to-ferrochrome, chrome chemicals and metals to stainless steel.

“In 2015, chrome ore used for chemical applications amounted to one-million tons to produce 650 000 t of sodium dichromate, which is used in a variety of essential applications, including leather tanning, just to mention the most prominent one,” she highlighted.

Neffati remarked that the conference was the place for finding “fresh and challenging” thoughts through practical cases presented by “expert and energetic” panellists during, for example, the stainless steel panel. She commented that this session was a “critically important” part of the programme, as this sector was the main supply market for the chromium industry.

The stainless steel roundtable and panel discussion were facilitated by steel and metals market research firm SMR MD Markus Moll. The panellists were Nigeria Stainless Steel Development Association member Timothy Onwughai, China Stainless Steel Association secretary-general Li Qiang and Indian steel conglomerate Jindal Stainless Group sourcing director Ramamurthi Ganesh.

During the session, it was highlighted that key drivers for stainless steel would increase petrochemicals investments, residential and infrastructure building, as well as defence.