Renegotiation fears spook chrome ore market

Chrome ore buyers in China have been forcing late-stage price negotiations or walking away from cargoes as they struggle to open letters of credit (LCs) amid sharp price drops.

Buyers have either failed or refused to open LCs to pay for material priced at levels that are no longer representative of the market, several sources told Metal Bulletin.
The renegotiation attempts have been caused by sharp price drops, but are contributing to further price falls by triggering distressed sales, which carry even lower prices, one market source said.
“There are rumours of more rejections on water, so there is no floor price for chrome ore yet,” the source said.
South African UG2 chrome ore fell to $128-138 per tonne cif China on Friday October 30, down from $138-143 per tonne previously and $154-155 at the start of the year. 
Turkish lumpy chrome ore fell to $180-185 per tonne cif China on Friday, down from $188-193 per tonne previously. 

The latest developments in the chrome ore market follow reports of similar...

Published

Janie Davies

November 04, 2015

12:27 GMT

London