UG2 chrome ore price slides again as market awaits July tender prices

The UG2 chrome ore market dipped in the week to Friday June 19 amid a lack of meaningful trading activity ahead of the release of July ferro-chrome tender prices, while spot Chinese ferro-chrome prices continued to show signs of softening.

Fastmarkets’ chrome ore South Africa UG2 concentrates index basis 42%, cif China was at $165 per tonne on Friday, down by $4 per tonne (2.4%) from $169 per tonne a week earlier.
Market sentiment among Chinese ore buyers softened last week as a result of continued weakness in the downstream stainless steel sector as well as the spot domestic ferro-chrome market, which reported a decline for a third consecutive week due to lowered spot offer prices with suppliers’ attempting to destock amid subdued spot demand.
Fastmarkets’ weekly price assessment for ferro-chrome spot 6-8% C, basis 50% Cr, ddp China was at 6,100-6,500 yuan ($862-919) per tonne on Friday, widening downward by 100 yuan per tonne from 6,200-6,500 yuan per tonne a week earlier.

“The backtrack of the spot market indicates the good availability of material and the reduced buying interests from mills, which casts a...

Published

Davide Ghilotti

Siyi Liu

June 22, 2020

15:05 GMT

London, Shanghai