China's Chrome Ore Imports in May Reached 1.8118 Million mt, High Demand Drove Prices Up [SMM Analysis]

According to Chinese customs statistics, China imported 1.8118 million mt of chrome ore in May, up 179,800 mt MoM (+11.02% MoM) and 128,600 mt YoY (+7.64% YoY). In May, China imported 1.4526 million mt of chrome ore from South Africa. In January-May, the chrome ore imports totalled 8.5095 million mt, up 1.7608 million mt YoY (+26.09% YoY).

According to SMM, domestic high-carbon ferrochrome production was close to 800,000 mt, bringing a more significant increase in chrome ore demand. This resulted in a slight shortage of chrome ore supply and a marginal decrease in port inventory. The inventory-to-sales ratio of chrome ore dropped to less than 1.5. Despite entering the traditional off-season for consumption, domestic high-carbon ferrochrome manufacturers maintained high production. Overseas miners remained confident in chrome ore demand from the Chinese market, driving offers to continue rising. South African 40%-42% chrome concentrates scheduled for shipments in August have been offered at over $320/mt, translating to a spot cost of over 64 yuan/mtu. Given the high costs and high demand, chrome ore prices are expected to continue to remain strong in the short term.