- October 21, 2020
- Posted in NEWS
According to a statement released by FerroAlloyNet Market Analysis chrome ore concentrate prices were hiked by 0.5-1 yuan/dmtu in China spot market last month due to the limited supply of Zimbabwe chrome ore at Chinese ports and increasing inquiries from downstream ferrochrome plants.
Rudairo Dickson Mapuranga
Ferrochrome market analysis said that the increase of chrome price during the first days of the month were contributed by the fact that, the market transactions were very active.
The analysis has also indicated that Zimbabwean chrome concentrate prices spiked by USD 10 per tonne mainly due to its limited supply, the fall of the dollar, and the increase in ocean freight while South Africa chrome increased by USD2- USD5.
“South Africa chrome ore prices rose by 2-5usd/T, and Zimbabwe chrome concentrate price rose by 10usd/T. Due to the depreciation of the USD dollar and the increase in ocean freight, South African chrome ore prices rose slightly. Before the new round of bidding prices are released, the market is mainly waiting and watching”
High-carbon ferrochrome price increased by 100CNT/Ton at 50 percent basis at the beginning of the month while prices were stable and strong at the end of the month
“High-carbon ferrochrome market price was raised by 100CNT/Ton 50% BASIS. Ferrochrome prices were stable and strong. At the end of the month, as the holiday approached, downstream replenishment activities gradually ended, market inquiries and transaction volume declined slightly. Market participants are waiting for a new round of HC ferrochrome tender prices after the holiday” reads the analysis in part.
“In September, the prices of imported high-carbon ferrochrome from South Africa and India were raised by 0.02-0.03 USD/lb, and Kazakhstan ferrochrome prices were increased by 0.05 USD/lb. Also, the Rand has become stronger again. The strengthening of their local currency pushes costs higher. Besides, ocean freight from South Africa to China also increased. Meanwhile, due to COVID-19, the supply of ferrochrome from South Africa decreased. South Africa ferrochrome suppliers get support to increase their offering prices.”
Zimbabwe has the second-highest chrome resources in the world after South Africa and has the potential to become the major producer of high-grade chrome ore in the world considering the fact that Zimbabwe’s chrome grades are higher than any other country in the world.
The Zimbabwean chrome ore is close to 50 percent chrome there are however some challenges including logistics which have constantly limited the market and production of chrome leading the country to become one of the lowest producers of chrome.