The persistent downtrend of ore prices has subdued market sentiment, which also weighed on the downstream alloy markets.
Fastmarkets’ chrome ore South Africa UG2 concentrates index basis 42%, cif China
nudged down $2 per tonne or 1.5% to $132 per tonne on Friday.
The market consolidated around the new price, where two producers reported liquidity.
“The price shock last week has stimulated the market. We have had a lot of bids coming in at the new price,” a producer said. “There are constraints in the supply chain so we don’t think the market is going to fall further.”
But the recently increased port inventories have made ore prices vulnerable to a further price downtrend, regardless of any potential impact on the supply side, several participants from the...