China: Depressed Ferro Chrome Market restraining Buyers from Procuring Chrome Ore

This week, the whole chain of chrome industry is more concerned about the HC Ferro Chrome tenders, of which many participants feel pessimistic yet still look forward to early confirmation so as to have guidance for operations on ores both for traders and alloy plants.

South African chrome concentrate and non-mainstream chrome ore prices for container cargo is lower by 5-10 USD/MT CIF China main ports. In terms of overseas offers on chrome ore, it is yet to hit standstill because of the hesitant attitude towards purchase on future deliverables following the struggling transactions on ores and alloy, albeit the overseas offers are already at 3 years' low.

According to the statistics with the General Administration of Customs, the total import of chrome ore in Oct 2019 was 1.46 MnT, a decrease of 0.79% or 11,600MT M-o-M and an increase of 47.47% or 470,000MT Y-o-Y. The total import of chrome ore during Jan -Oct 2019 was 12.78 MnT, an increase of 6.47% or 776,700 MT Y-o-Y. At present, the total inventory of chrome ore in southern ports alone, in China is as high as 855,000 MT, while Shanghai Port and Chongqing Port is stable at 150,000 MT approx. Due to the lack of support from the Ferro Chrome market, the southern ports are mostly focused on clearing up their raw material inventory. From the perspective of the Ferro Chrome producers, the accumulation of the Ferro Chrome can be sold anytime in the market, but the building up of Chrome Ore inventory not only blocks the capital but also it cannot be utilized when the market turns. This has kept the producers from stocking Chrome Ore as the inventory pressure is too high right now.