In August, chrome ore imports reached 1.5623 million mt, with import volume decline unable to rescue ore prices [SMM Analysis]

According to Chinese customs statistics, in August 2024, China imported 1.5623 million mt of chrome ore, down 240,900 mt MoM (13.36% decrease); down 77,500 mt YoY (4.73% decrease). In August, China imported 1.1607 million mt of chrome ore from South Africa. From January to August 2024, China's total chrome ore imports were 13.7197 million mt, up 2.1561 million mt YoY (18.65% increase).

According to SMM, despite the decline in imported chrome ore volume, domestic ferrochrome manufacturers maintained a high operating rate, with ferrochrome production exceeding 770,000 mt in August. Chrome ore inventory at national ports decreased, falling to 2.0373 million mt by the end of the month. However, downstream stainless steel consumption did not significantly increase, causing the traditional "September-October peak season" to fall short, leading to a severe oversupply of ferrochrome and a softening of high-chrome steel procurement prices. Ferrochrome manufacturers had limited acceptance of high-priced raw materials, resulting in a drop in chrome ore prices. Today, Tsingshan announced a significant reduction of 400 yuan/mt (50% metal content) in October bidding prices, with the market generally bearish on chrome ore. However, current chrome ore port inventory is low, and tradable volume is scarce. Due to insufficient demand, ferrochrome faces a severe oversupply situation. The decline in chrome ore prices is difficult to sustain in the long term. The key lies in gradually absorbing the existing surplus of ferrochrome by reducing overall supply and extending the period.