Lowered UG2 offers continue to spark liquidity, but bearish sentiment persists

The UG2 chrome-ore market has seen fresh liquidity with previous offers from miners encouraging buying interest. And ample supply plus sluggish demand has continued to weigh on the market.

Fastmarkets' chrome ore South Africa UG2 concentrates index basis 42%, cif China dipped by $1 per tonne on October 26 to $154 per tonne.
“40 to 42 percent concentrate material is under huge pressure and will remain in this situation for as long as the power constraints are in place in China,” an ore producer source said. “Meanwhile, higher grades of ore are holding up quite well in terms of price.”
And the ample material readily available in China has also acted as a disincentive to buy more material.
“Why would a buyer pay any higher when there is plenty of ore already in China?” a market participant said.

Fastmarkets assessed chrome ore inventories at the main ports of Tianjin,...

Published

Jon Stibbs

Siyi Liu

October 27, 2021

13:49 GMT

London, Shanghai