Positive sentiment supports UG2 chrome ore market

The market for UG2 chrome ore ticked up in the week to September 15 on strengthening sentiment amid low liquidity, while both the domestic and imported ferro-chrome markets remained stable, sources said.

Fastmarkets’ chrome ore South Africa UG2 concentrates index basis 42%, cif China edged up by $1 per tonne to $138 per tonne week on week on Tuesday September 15.
“There has been a little flurry of activity in recent weeks and a gradual uptick in demand,” a trader said.
Sentiment increased in response to market reports of extremely low exports of chrome ore and ferro-chrome from South Africa in July and the strong alloy consumption in the steel sector, one producer said.
China imported 1.14 million tonnes of chrome ore in July, up by 44% from 790,097 tonnes in June, but also down by 16% from the 1.4 million tonnes imported in July 2019, China’s customs data shows.

“We think the market should be $145-170 per tonne on average this year so we’ll wait until we’re in that range [before...

Published

Jon Stibbs

Siyi Liu

September 16, 2020

11:45 GMT

London, Shanghai