Availability of Chrome Ore at lower prices on Chinese ports has restricted imports of higher-priced Chrome Ore offers from South Africa.
The gap between the import price of Chrome Ore from South Africa and that of the commodity available at the Chinese ports is getting wider. This is due to high inventory of Chrome Ore at Chinese ports coupled with sufficient stock with major ferro chrome producers – thus, restricting demand for importing Chrome Ore at high prices.
SteelMint assessed South African UG2 Chrome Ore price at USD 200-205/MT CIF China for 40-42 grade lumpy ores.
Ome major South African miner reduced their Chrome Ore supply volume to push its prices upwards on the expectation that the alloy producer would need to replenish their inventories for the month of July and August, and would willing to buy at higher prices.
However, the demand for imported commodity got hampered as the Chinese buyers are preferring the commodities stocked on the ports.
Moreover, in this situation, the local supplier will keep their prices competitive against the imported offers. Eventually, imports from South Africa will get restricted following the low price of Chrome Ore at Chinese ports.
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