FOCUS: Five factors driving the chromium metal rebound

After being badly hit by Covid-19, chromium metal prices have started to rebound on transport disruptions and high production costs, adding to a more positive outlook for 2021.

Fastmarkets’ price assessment for chromium alumino-thermic 99% min, in-whs Rotterdam, was at $5,700-6,050 per tonne on Friday November 27, up by $200 per tonne (3.5%) from $5,500-5,850 per tonne a week earlier and rising for a second consecutive week.
These are the first consecutive price increases after broad downtrend that started on April 10, when prices stood at $6,400-6,800 per tonne.
"Here and now there are a number of factors that point to some change in direction in the market,” a chromium metal producer source said.
One of them is related to the high transportation costs that have come about as a consequence of container shortages, impacting both rail and ocean freight rates.

A combination of fewer vessels on the water, an imbalance in trade flows to and from China, and competition between cargoes has kick started a rapid increase in shipping costs...

Published

Cristina Belda

December 01, 2020

09:10 GMT

London