China's chrome ore imports in April reached 1.6319 million mt, demand growth left supply gap [SMM Analysis]

According to customs statistics, China imported 1.6319 million mt of chrome ores in April, down 15,100 mt MoM (-0.92% MoM) but up 158,200 mt YoY (+10.73% YoY). The imports in January-Apirl totalled 6.6977 million mt, up 1.6322 million mt YoY (+32.22% YoY). In March, China imported 1.3974 million mt of chrome ores from South Africa.

According to SMM, the imports of chrome ores in April remained at a high level, but chrome ore inventories at ports declined with high operating rates of domestic high-carbon ferrochrome manufacturers. In May, due to bid prices and the arrival of the rainy season in South China, high-carbon ferrochrome production further increased, but chrome ore port arrivals in May are expected to decline, causing inventories at ports to drop, elevating chrome ore prices. Recently, the price of South African 40-42% chrome concentrates scheduled for shipment at the end of July rose to $315/mt, translating to a spot cost of 63 yuan/mtu. In addition, with the continued high operating rates of high-carbon ferrochrome manufacturers, chrome ore prices may barely drop.