Chrome Ore Prices Climb as Port Inventory Remained Low in Dec despite Large Imports

SHANGHAI, Feb 3 (SMM) - According to customs statistics, China's imports of chrome ore were 1.32 million mt in December 2022, an increase of 173,800 mt or 15.23% from the previous month, and up 52,400 mt or 4.16% on the year. Among them, 1.11 million mt were imported from South Africa. China's chrome ore imports totalled 15 million mt in the full year of 2022, up 54,900 mt or 0.37% year-on-year.

According to SMM survey, the chrome ore imports maintained a high level in December because of the brisk trades earlier at low prices and the stocking demand among downstream enterprises in the year-end.  However, the output of ferrochrome stood high, which entailed a large quantity of chrome ore, thus the port inventory did not accumulate significantly on large imports, and chrome ore prices showed an upward trend.

Although the stainless steel output was estimated to fall sharply in January, the port arrivals of chrome ore also contracted substantially. Therefore, the chrome ore prices still strengthened with the support of restocking demand during the Chinese New Year holiday and the bullish sentiment on its outlook.

It is forecast that chrome ore prices will rise further in the short term, bolstered by low inventory, high concentration of resources and optimistic expectation.