Chrome Ore Supply Remained Tight, Prices Stayed High [Weekly Chrome Ore Review]

Last week, retail prices of chrome ore further climbed, hitting new highs in recent years. The spot transaction price of South African 40-42% chrome ore concentrates in the domestic market was concentrated at 64-65 yuan/mtu, while offers for cargoes scheduled for shipments in August rose to over $320/mt, translating to a spot ore cost of approximately 64 yuan/mtu. The cost of imported chrome ore is expected to remain high, causing traders to be unwilling to sell at low prices. Despite the surplus in high-carbon ferrochrome supply this year, smelting profits continued to shrink. With the off-season for stainless steel consumption and the continuous decline in stainless steel prices, there is some downward pressure on high-carbon ferrochrome procurement. Currently, chrome ore prices have reached a peak, and most chrome ore traders are cautious about high prices. They are willing to sell spot cargoes, but unwilling to accept future cargoes.

Last week, chrome ore inventory at Tianjin Port further decreased to 2.1014 million tons, and the national port inventory also reduced to 2.58 million tons, leading to a chrome ore inventory-to-sales ratio of 1.37. Although data shows that the total shipments from major global ports in May reached 3.0217 million tons, setting a historical record, many ships have been diverted to Singapore. According to domestic shipping reports, the arrivals of chrome ore at Tianjin Port in June are expected to be only 1.0666 million tons. Against the backdrop of high domestic high-carbon ferrochrome production, the supply of chrome ore still appears somewhat tight.