Chrome ore prices touched recent highs, driven by demand [Weekly Chrome Ore Review]

Last week, retail prices of chrome ore further increased, reaching the highest point since 2017. The domestic spot price of South African Cr40-42% chrome concentrates was concentrated at 63-64 yuan/mtu. Overseas offers for chrome ore scheduled for shipments by the end of July climbed to $318/mt, leaving spot chrome ore costs at 63.5 yuan/mtu. It is expected that the costs of chrome ore arriving before September will remain high. Many high-carbon ferrochrome producers rejected high-priced chrome ore. Although prices increased further, the market was more cautious about transactions. However, some large producers in North China indicated that due to continuous production, they passively accepted high-priced chrome ore and restocked as needed. Additionally, with current low port inventory and high output of high-carbon ferrochrome, the inventory-to-sales ratio is less than 1.5. The market does not expect chrome ore prices to fall in the short term, and there are concerns about taking orders for future shipments. Therefore, chrome ore prices are expected to stabilise at the current level.