Good supply, falling alloy price knock sentiment for UG2 chrome ore

The arrival of lower-priced cargoes and weakening downstream demand weighed on the market for UG2 chrome ore in China in the week ended Tuesday October 20, although liquidity was light.

Fastmarkets’ chrome ore South Africa UG2 concentrates index, basis 42%, cif China, fell by $4 per tonne (-2.9%) to $135 per tonne on Tuesday, from $139 per tonne a week earlier.
“More people are looking to sell than are looking to buy, pushing the prices down,” a seller said.
The subdued buying interest was mainly attributed to there being sufficient stocks in buyers’ possession and ample supply immediately available at ports.
“Cargoes previously purchased at $132 per tonne arrived before and after the [Chinese Golden Week] holiday [at the start of October], so no one is in a rush to buy,” a trader source said.
Liquidity was said to be limited.

Published

Jon Stibbs

Siyi Liu

October 21, 2020

11:55 GMT

London, Shanghai