According to the preliminary data of ICDA (The International Chrome Development Association), in Jan.-March of 2010 global chromium ore output reached 5.02 mio tons, which was up 42.8 % on the Q1 of 2009 (3.52 mio tons).
Due to the global economy slowdown in the Q4 of 2008, chromium ore output fell. However, during 2010 the production volumes recovered.
China is the world biggest chromium ore consumer. However, the situation in chromium ore market has started to change. As early as in Jan.-March of 2010 China increased chromium ore purchases in global market twice as compared with the same period of 2009, to 2.896 mio tons (1.435 in 2009). Due to high import of the material to China, significant stockpiles collected there. thus, by the end of May chromium ore volume in the ports of discharging reached 2 mio tons, including Shanghai – 0.6 mio tons and Lianyungag – 1 mio tons. That is why Chinese consumers terminated import and started waiting policy expecting Turkish chromium ore prices decrease. New offers for lumpy ore (42 % Cr2O3) imported from Turkey, are about $350-360/? CIF, which are by $30-40 per ton lower than previous offers.
Turkish chromium ore prices fall is the reflection of the situation in the market. In Chinese domestic market high-carbon ferrochromium price fell by CNY800 per ton, to CNY9 thousand per ton. Some suppliers offer it at CNY8.5 thousand per ton. |
