China: South African Chrome Prices Down Due to falling South African Currency

Recently the continuous decline in both overseas and domestic offers of RSA concentrates has led 40-42% concentrate down to USD 122-125/CIF. However, the price expectation between sellers and buyers are existent whereas the former is set to accept USD 120 while the latter is looking at USD 115.

Most market participants still hold bearish outlook towards later development of Chrome ore, given that spot cargo at Chinese ports softened together with overseas offers. Even after the RSA concentrate price has come down to RMB 24/dmtu, it turned out to be futile to spur alloy producers' buying interests, with the bearish outlook in the way of possible transactions. Due to above-mentioned reason, ordering for future deliverables has been done with caution, and buyers' willingness to demand lower prices exacerbated following the notable depreciation of South African Rand against US Dollar, alleviating the pressure to suppliers brought by a reduction in prices.

Though some major supplier expressed that sales pressure is manageable, the shipments after the Chinese spring festival has been unsmooth due to interplay of multiple factors which will certainly result in sales pressure both for oversea and domestic sellers. Therefore, to concede and show good faith eying on stable and the cooperative relationship may well serve as an advisable move for sellers to ease the pressure as most traders are still holding low spirits for new orders.

Chrome ore stock level as of Mar 13