South Africa’s Covid-19 lockdown checks chrome ore, alloy price downtrend in China

The downtrend in the UG2 chrome ore price was capped in the week to Friday March 27 after South Africa entered a 21-day lockdown to combat the spread of the Covid-19 virus, also lending support to the Chinese domestic high-carbon ferro-chrome market.

South Africa entered a nationwide lockdown at midnight on March 26 and ordered the country’s metals and mining operations to be placed on care and maintenance.
The African nation accounts for 60% of global chrome ore production.
A slump in demand from China has led to weakened UG2 chrome ore market in the recent month. But market sentiment was strengthened after mines and smelters across the country were ordered to shut down, while export activities for minerals have also been suspended for the period of the lockdown.

Fastmarkets’ South Africa...

Published

Davide Ghilotti

Siyi Liu

March 30, 2020

14:48 GMT

London, Shanghai