China: Chrome ore price inch down amid lackluster market

There is no price adjustment in overseas offers with SA chrome concentrates 40-42% mostly offered at $135/t. Some alloy plants put off purchase plan due to the blunt market sentiments. On port spot price, the South African concentrates 40-42% is offered at RMB 26-27/dmtu; at present, the transactional prices slipped marginally by RMB 0.5-1/dmtu from the level prior to holiday and traders are active to seek deals amid bearish outlook for tender prices next month. Some traders said they'd prefer to hold back offers given the unstable market until the tender price gives a clear direction. In short, the market confidence turned slightly weak and chrome ore price in the short term may remain under downward pressure.

In the ferro chrome market also there is no apparent price adjustment, with just a minor slip of RMB 50-100/t ($ 7.49-14.97/t) to report RMB 5,800-5,900/t ($868.41-883.38/t) in Inner-Mongolia. Due to the softened chrome ore prices, some alloy plants reduced offer levels while quite some insist on firm offers within the context of focusing on delivering long term contracts. At present, the purchase enquiries on HC ferro chrome is tepid and less transactions spotted compared with prior to the holiday level. For the moment, alloy plants have managed to operate with thin profits and alloy price is shy of upward momentum any time soon because of the increased alloy import, weighing on the supply. In the short term, alloy price is likely to remain under pressure until the tender price to guide the market.