Chinese alloy market, currency movements support UG2 prices

The UG2 chrome ore prices in China rose again on Tuesday September 23, with the steady downstream ferro-chrome market supporting market sentiment, sources told Fastmarkets.

Fastmarkets’ chrome ore South Africa UG2 concentrates index basis 42%, cif China edged up by $1 per tonne or 0.7% to $139 per tonne week on week on Tuesday September 22.
The index has risen for four consecutive weeks from $133 per tonne on August 25, marking a total gain of 4.5%.
Some ferro-chrome producers told Fastmarkets that they were willing to accept higher prices in dollar terms for UG2 chrome ore due to the strengthening yuan.
The Chinese currency was trading at 6.78 yuan to $1 on Tuesday, compared with 6.91 yuan to $1 on August 22, according to currency exchange website Oanda.com.

“Ferro-chrome producers can absorb higher prices in dollar terms but we don’t see a strong price uptrend so we’re still...

Published

Jon Stibbs

Siyi Liu

September 23, 2020

12:25 GMT

London, Shanghai