Ore prices drop after yuan depreciation raises import costs.
Domestic and imported alloy prices drop in China.
South Korea and Japan markets flatline in thin trading.
European alloy prices dip on weak demand and ample availability.
US market flatlines on lackluster demand.
UG2 chrome ore prices slid in China for the second consecutive week on Friday after some traders cut prices to secure sales after yuan depreciation knocked buying interest from alloy smelters.
Fastmarkets’ UG2 chrome ore index, cif China dropped $4, or 2.4%, to $163 per tonne on Friday.
Chinese ferro-chrome producers showed limited interest in restocking chrome ore because the weakening of the yuan against the dollar made importing more expensive, market sources told Fastmarkets.
The yuan was trading at around 6.88 to the dollar on May 17, compared with 6.82 on May 10 and about 6.71 on April 17, according to currency exchange website Oanda.com.