SOVIET SALES OF CHROMITE TO THE FREE WORLD CONTINUE TO INCREASE
Document Type:
Collection:
Document Number (FOIA) /ESDN (CREST):
CIA-RDP79T01003A001600240001-7
Release Decision:
RIPPUB
Original Classification:
C
Document Page Count:
13
Document Creation Date:
November 16, 2016
Document Release Date:
April 27, 2000
Sequence Number:
1
Case Number:
Publication Date:
June 17, 1963
Content Type:
BRIEF
File:
Attachment | Size |
---|---|
![]() | 563.46 KB |
Body:
Approved For Release 2000/06/07 : CIA-RDP79TO1003AO01600240001-7
CONFIDENTIAL
Current Support Brief
SOVIET SALES OF CHROMITE TO THE FREE WORLD
CONTINUE TO INCREASE
CIA/RR CB 63-53
17 June 1963
CENTRAL INTELLIGENCE AGENCY
Office of Research and Reports
CONFIDENTIAL
downgrading and
declassification
Approved For Release 2000/06/07 : CIA-RDP79TO1003AO01600240
Approved For Release 2000/06/07 : CIA-RDP79TO1003AO01600240001-7
This material contains information affecting
the National Defense of the United States
within the meaning of the espionage laws,
Title :18, USC, Sees. 793 and 794, the trans-
mission or revelation of which in any manner
to an unauthorized person is prohibited by law.
Approved For Release 2000/06/07 : CIA-RDP79TO1003AO01600240001-7
Approved For Release 2000/06/07 : CIA-RDP79TO1003AO01600240001-7
C -O-N-F -I-D-E -N-T -I-A-L
SOVIET SALES OF CHROMITE TO THE FREE WORLD
CONTINUE TO INCREASE
The USSR, the world's leading producer of chromite, is becoming an
increasingly important source of supply for consumers of this industrial
raw material in the Free World. From an average of 146, 000 metric
tons (mt) a year in 1955-58, Soviet sz .llls of chrome ore in Free World
markets climbed to more than 300, 000 mt per year in 1961 -62 and may
increase further in 1963-65 in 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, and particularly a recent sale of 300, 000 mt to a US
importer for delivery in 1963-65, 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 of chromite con-
tinuously since 1958, having previously held this position in some years
immediately after World War II. Soviet production, which averaged
about 850, 000 mt a year during 1955-58, rose to 1. 5 million mt in 1962.
Output increased from approximately 20 percent of world production
in 1955-58 to 29 percent in 1960-61, as can be derived from data in
Table 1. Production of metallurgical-grade ore in 1962 is estimated
at 1 million mt and, if the Seven Year Plan is fulfilled, could increase
to 1. 4 million mt in 1965.
An increasing proportion of Soviet production is being exported. From
an average of about 215,000 mt a year in 1955-58, total exports have in-
creased to more than 400, 000 mt, or from about 25 percent of production
to more than 30 percent. Soviet exports of chromite are shown in Table 2.
C-O-N-F-I-D-E-N=T-I-A-L
Approved For Release 2000/06/07 : CIA-RDP79TO1003AO01600240001-7
Approved For Release 2000/06/07 : CIA-RDP79TO1003AO01600240001-7
The USSR is the 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 significant quanti-
ties to these countries, but Albanian ores are of poorer quality, con-
taining an average of only 45 percent chromic oxide, and are less
suitable for metallurgical use. Soviet shipments to the Bloc followed
a general upward trend during 1955-60 but declined abruptly in 1961,
when there were no deliveries to China. Exports to China in 1960 had
amounted to 41, 000 mt. Apparently, Communist China has turned to
Albania for its supplies, imports from that country having increased
from about 15, 000 mt in 1960 to an estimated total of 40, 000 mt in 1961.
2. Exports to the Free World
Soviet exports of chromite to countries of the Free World have in-
creased by 141 percent since 1958 and in 1961 represented 70 percent
of total exports. Exports to the Free World also have increased from
4 to 5 percent of production in the Free World in 1955-58 to more than
10 percent in 1961. 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 West Ger-
many, Sweden, France, and Japan, as shown in Table 3. Of the aggre-
gate imports of all grades of chromite by West Germany, France, and
Sweden, the quantities imported from the USSR rose from about 20 per-
cent in 1959 to 27 to 29 percent in 1960-61. Japanese imports of Soviet
ore, which represented 5 percent of total imports in 1959, increased to
20 percent in 1960-61. 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 remain at a high level during 1962-65.
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 period 1962-65, Austria is to receive 20,000 mt per year, Italy
30, 000 mt, and Norway 10, 000 mt.
- 2 -
C -O-N-F -I-D-E -N-T -I-A-L
Approved For Release 2000/06/07 : CIA-RDP79TO1003AO01600240001-7
Approved For Release 2000/06/07 : CIA-RDP79TO1003AO01600240001-7
The latest known contract for the sale of Soviet chromite in the Free
World, and one involving the largest tonnage sold by the USSR in recent
years, was concluded with a US importer early in 1963 and reportedly
provides for the delivery of about 300, 000 mt of metallurgical-grade ore
during 1963-65. 1/ This contract anticipates the largest shipments since
1947-48, when Soviet exports to the US averaged about 270, 000 mt a
year -- an amount equal to nearly 50 percent of total US imports of metal-
lurgical-grade ore in those years. 2/ Actual shipments in 1963-65 prob-
ably will exceed 300, 000 mt inasmuch as amounts remain to be delivered
during 1963 on contracts concluded in 1962. In the fourth quarter of 1962,
contracts reportedly were signed for the delivery during 1962-63 of about
80, 000 mt. 3/ Actual US imports of Soviet ore in 1962. amounted to about
29, 000 mt, of which more than 22, 000 mt were received in the last quar-
ter of the year. If it is assumed that shipments on the new contract are
spaced evenly during 1963-65, US receipts in 1963 could approximate
150, 000 mt, or the equivalent of nearly 25 percent of annual consumption
of chromite by the US metallurgical industry in 1960-62.
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 a.ttracitively,_patticu-
larly in view of their high quality. Soviet ore received in the US in 1962
contained 56 percent chromic oxide with a chrome to iron ratio of 3. 6 to
1 and reportedly was sold in the US market for about $34 per mt. In
comparison, delivered prices of $36 to $38 per mt have been quoted in
trade journals for Turkish and Rhodesian lump ores of a standard grade
of 48 percent chromic oxide with a chrome to iron ratio of 3 to 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 market at a delivered price of $15. 50 per 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 limited some-
what for use in making low-carbon ferrochrome because of a high phos-
phorous content. At the low sales price, however, they represent an
attractive alternative to Rhodesian metallurgical fines, which for some
time have been quoted at $27 to $28 per mt.
Approved For Release 2000/06/07 : CIA-RDP79TO1 003AO01 600240001-7
Approved For Release 2000/06/07 : CIA-RDP79TO1003AO01600240001-7
C-O-N-F-I-D-E-N-T-I-A-L
Table 1
Estimated World Production of Chromite
1955-62
Year
Total
World
Free
World
1955
3,725
2,820
1956
4,203
3,270
1957
4,745
3,707
1958
4,002
2,851
1959
4,239
2,851
1960
4,910
3,271
1961
4,651
3,003
1962
N.A.
N.A.
a/
Total J
USSR
Albania
905
783
122
933
800
133
1,038
870
168
1,151
950
201
1,388
1,140
248
1,639
1,350
289
1,648
1,415
233
1,788
1,525
263
a. The total does not include small quantities of chromite believed to be
produced in Bulgaria, Rumania, and North Vietnam.
Soviet Exports of Chromite
1955-62
Year
Total
Free World
Bloc
1955
158 a/
131
21
1956
219
177
42
1957
259
149
110
1958
215
127
88
1959
272
174
98
1960
427
268
157
1961
438 J
306
124
1962
N.A.
N. A.
N.A.
a. Totals reported by the USSR include shipments for which countries of
destination are not shown.
C-O-N-F-I-D-E-N-T-I-A-L
Approved For Release 2000/06/07 : CIA-RDP79TO1003AO01600240001-7
Approved For Release 2000/06/07 : CIA-RDP79TO1003AO01600240001-7
a)
U
4)
Lr\
rn
\10 co
0 U11\
H
O\
H
\O f-~,O
0110
1-1
0
ON
rA
0t-10
N
ON
r--
. N-
H
0'U
0
0\
H
0
. 0
0
c
Lr,\ Lr\ \O - N -zi- -- -~'
Lf\ \O Lr,\ m H N ! O CO N
--~- r-I ~O
H 00 C-- 0 - C-I HI m 0\-:-
CO
-:' \O Lr\ L- N Lr\
0 Lr
ro,
o o
N 11] u)
co
L7\ 0 +' ?rl
04-' H
LO
?H
CO 0
H rd
0 -I-3 9.1
Cd
+' .r{ Lr\ ;i 4j
00 0
o
0\
~ bD 0
? `d U) bO
rd a) 4 0
0
N 0
N
P Id 0\ID r1i 0 N 0 +'O\
4i c) ri
-P H ',,s ?ri ~"
N Fi +' 'rl
0 (1) rd
H7 U-)
N Q) +~ O r-i
++' cd Uc) O
0 0
r. C)
.H O Pi 0
Id U U
0 +' 0 ca
i N H
P-1 Ci U 0
(1) U , ?r i +' co
c ) 0
cdd ? c?
(i) rd P co
Lid P C a) @ C
Cd a) cc r-I
r-I U O rc! P 1c1 ?0
?rl +' O ?H
I Id N FA cd
C6 10 ?rl p (1)
N mU\\,O\O N 031 mNO0
NNm~,OHH 0\ mCUr?-IN
m\.O Lr\ H H 0 00 -A m
-:I- N N
NII m~- HHm HHHOJ
N
(1) U rd
m F-I Q)
bD ?r-I Ci
Q) co
C u)
a) S='i
CTS
?rl
P, 0
0 +'
U)
r-I
O
U
O~ O
U)
d
+'
rd .
?rl -N
rl
U)
O
8 rd 81
co
T
cd O\ cdd
FL,
O
co H
P d Q)
co
10
0 m Cd
P P
H- z' I~ P O
Q)
-P
Cd
0
Cd
C.)
O
E-i
Cd N P
r0 C) rd Q) LL(\
Approved For Release 2000/06/07 : CIA-RDP79TO1003AO01600240001-7
Approved For Release 2000/06/07 : CIA-RDP79TO1003AO01600240001-7
Analyst:
25X1A
1. Mining Journal, 1 Mar 63, p. 209. U.
American Metal Market, 20 Feb 63, p. 1-2. U.
2. US Bureau of Mines. Minerals Yearbook, 1948, p. 250. U.
3. Mining Journal, 1 Mar 63, p. 209. U.
4. State, Paris. Dsp CEDTOA-901, 11 Apr 63. C.
Approved For Release 2000/06/07 : CIA-RDP79TO1003AO01600240001-7
Approved For Release 2000/06/07 : CIA-RDP79TO1003AO01600240001-7
CONFIDENTIAL
CONFIDENTIAL
Approved For Release 2000/06/07 : CIA-RDP79TO1003AO01600240001-7
Analyst: R/MM
Approved For Re tq,2p c 1j 19650?d240001-7
25X1A
Control Staff
'.'",orLt:rOl Sheet
01, FIDENT
Copy No.
Seriee, Number CIA/RR CB 63-53 !"lassificatior_
Date of Document 17 June 1 63 '.atmber of CoDies
160,161
158 - 223 Recd in St/P/C 17 Jun 63
158 St / P 18 Jun 63
159
162
163 164
?_._..w.
165
166
167
168 ..~..v.._
169
25X1A
Recipient
1. L
Returned
'1 !
mur t
Excbded from automatic
ewagradJng and
rFac{aasltlcaton
Approved For Release 2000/06/07 : CIA-RDP79TO1003AO01600240001-7
S-E-C-R-E-T
SUBJECT: Distribution of Current Support Brief No. 5t_rl
4et Sales of Chrox~i _#.c . ` , n ;'~zld-l Qnttaue_- : ar se,
11 m 1
Cop' No.
Recipient
1
O/DDI m
Room 7E32 Hq.
2 3
TIC
4- 11
OCI Internal
;25X1A
12 - 14
ONE
I5-20
St/CS/RR
25X1A
21
O/DDI -
-
22 - 30
NSA.
31
NSAL
25X1A,
32 %AA0275
ORR/St/I/D Distribution
(Distributed by OCI)
Group I
Excluded from automatic
S-E-C-R-E-T
Approved For Release 2000/06/07 : CIA-RDP79TOI
downgrading and
UP. RL1
of Ghro to to the ree orl ontinue to crease --- use 1 onfidential
Coaxtoa
32 AD/RR
33 DAD / RR
34 Ch/E
35 St/PR
36-40 D/A 0 each branch)
41-46 DIMS (1 each branch)
47-53 D/ R (1 each branch)
54-61 D/M (1 each branch)
Recipient:
224
225
226
OCI/OS/RP, 2E19 Hq.
DDI/CGS, 7F35 Hq.
DDI/CGS/HR, 3F30 Hq.
62-70 D/1 (1 each branch; 2 for I/TF)
71-73 WOO
74-77 St/1 (1 each branch)
78 P: iC/S 25X1A
79 St/FM
80 Analyst/Branch R/MM)
81 GR/CR
82 BR/CR
83 IR/CR
84 Library/CR
85 IPI/CR 25X1 A
86 r~MR L -
8? AD/00
88 Chief, FDD
89 CD/ 010
90-92 RID/A3N, Unit 4 25X1A
93-95 OSR
96 Ofil
227, t t OTR= IS/IP,, Room GC11,, Hq,, (OTR/SIC)
98 NPIC/CSD/REF,, Room 1S518,,
99 Coni andant Natal. War College,, Ft;, Leslie McNair, Attn.- Classified
Records Section. Rm,, 26, Nat'l. War College Bldg., ? Wash 25,: D~ C.
100-110 ACSF/Army,, Room 1D479,> Pentagon
111-124 Navy? Director ONE,, Room 5D659 Pentagon
l25434 HO. USAF, Attn. AFCIN-3D10 Room 43137,, Pentagon
135-136 Aee?t0 Secretary of Defense,, ISA,, Room 4D825,, Pentagon
137-140 USIA,; Attar-, W. Phelps? IRR/D, Room 701, Walker Johnson Bldg,
1734 New York Ave.,, Na W u
141-152 State? INR Communications Center, Room 7818, State Dept, Bldg
153-154 DIA,, Services Division,, Publications Section Room 20230, Pentagon
155-156 Dr0 Neilson Debevoiee, NSC, Room 365, Executive Office Building
157 Dept. of the Treasury. Office of International Finance, Mrs E. D.,
Downing,, Room 5421? 15th St, & Pennsylvania A' e... , N, W,;
Attn.- William Turpin, Special Asset, to Secretary of the
Treasury,, Room 3330, Treasury Bldg:.
158-223 St/P/C? Room 4F41, Hq.
-w75 Records Center
Approved For Release 2000/06 I pr7%Tglgu ,,001600240001-7
c dl
da-tagrading and
Litt, I k' tiew
b \ ou1rcots 9c, h,rt tbecked
Approved for Release 2000/06/07 : CIA-RDP79TO1003AO01600240001-7
OR.R PURLIC4`T'XO? S COON 'P OL PROCESS ; SHEET
P `r t 'ate k" it
.S=E-C -i'?-E_T
ar
Report #1 went to AD/RR
Report 02 set to D?I
Report #3 gi-+ cr: to
for esavitizin ,
OL.IPSD notified to disseminate
25X1A
Approved For Release 200 ..19,61978 # JA,RDP79TO1003
Group 1
016od t in utom~s#cq
dec,~:~~xfxca:tiax~
VQV+~~fsts a wad