China’s UG2, ferro-chrome markets supported by positive near-term outlook

Market activity in China’s UG2 chrome ore and ferro-chrome markets slowed down ahead of the country’s Lunar New Year holiday, but the confidence in the near-term outlook continued to support the markets in the week to Tuesday February 2.

Fastmarkets’ chrome ore South Africa UG2 concentrates index, basis 42%, cif China settled at $169 per tonne on Tuesday, up by $4 per tonne (2.4%) from $165 per tonne in the preceding week.
Both buy and sell sides of the UG2 market reported few activities due to China approaching its Lunar New Year holiday (February 11-17).
“The market has quietened down prior to the Chinese New Year. No doubt producers want to push up prices but there are no buyers or liquidity,” a trader said.
But some smelters showed increasing purchasing appetite of high-grade ore following the fat profit margins that emerged from current ferro-chrome prices.

Fastmarkets’ price assessment for ferro-chrome, contract, 6-8% C, basis 50% Cr, ddp China moved up by 100 yuan per tonne to 8,400-8,800 yuan ($1,300-1,362) per tonne on Tuesday, from...

Published

Jon Stibbs

Siyi Liu

February 03, 2021

12:45 GMT

London, Shanghai