China: Prices of Chrome Ore Increases on Extended Lockdown in South Africa

The spot price of South African Chrome concentrates and Oman lumps hiked up by RMB 1/dmtu. Affected by the extended 2 weeks of lockdown across South Africa, Chinese port traders gained confidence and the once cooled down market again warmed up with some traders choosing to hold back offers and a few who were willing to sell previously raised their offers accordingly, leaving low prices no longer available in the market.

The overseas markets adversely impacted by the epidemic saw disrupted supply chain and the operation itself, coupled with ocean freight hike the offers are on the rise with fewer participants and transactions. Major chrome ore producing countries such as South Africa, Turkey and Oman are all to some extent curtailed in mining activity.

Price by overseas suppliers:
Affected by the ongoing pandemic, there is no update on offers from South Africa.

Stainless Steel:
In the morning session, the stainless-steel futures opened at RMB 12395 (USD 1758) and rocked to RMB 12605 (USD 1788) before falling to the lowest RMB 12380 (USD 1756) and then reaching the peak for the day at RMB 12695 (USD 1801) and closed at RMB 12510 (USD1775), marking an increase of 0.44% from yesterday's closing price. Till now, stainless steel futures have realized an increase of five days in a row. On the spot market, stainless steel 200 & 300 series both gained momentum and transactions also improved under the mentality of pursuing uptrend market.

Ferro Chrome:
The prolonged lockdown in South Africa and India have strengthened traders' confidence and most of them chose to mark up offers. In respect of Ferro Chrome, the increase in costs prompted producers to tentatively raise RMB 50/50basis per ton to check the market response, in a backdrop of lagged demand. Currently, offers of HC Ferro Chrome of South Africa and India origin is not available.

HC Ferro Chrome in the domestic market:
Fecr55c1000 (price on 50 basis ex-plant, tax inclusive, cash)