UG2 price decline slows in quiet market; charge chrome market dips

The UG2 chrome ore market was quiet last week with low liquidity and indications that the rate of the price fall had slowed after previous heavy drops, while ferro-chrome markets continued to show a sign of weakness, sources told Fastmarkets on Monday July 13.

Fastmarkets’ chrome ore South Africa UG2 concentrates index basis 42%, cif China edged down by $1 per tonne, or 0.7%, to $152 per tonne on July 10 from $153 per tonne the preceding week.
“There is a lot of wait and see - buyers are holding off for lower prices,” a trader told Fastmarkets.
The index has registered a five-week downtrend since June 5 when it was calculated at $170 per tonne, a total reduction of $18 per tonne or 10.6%, due to lower July ferro-chrome tender prices and slow buying activity amid good availability of chrome ore stocks.
Fastmarkets assessed chrome ore inventories at the main Chinese ports of Tianjin, Qinzhou, Lianyungang and Shanghai at 3.19-3.48 million tonnes on Monday July 13, down by 1.6% from 3.26-3.52 million tonnes a week earlier.

Port stocks have been consecutively declining in the past three weeks,...

Published

Jon Stibbs

Siyi Liu

July 13, 2020

14:00 GMT

London, Shanghai