Price Of Chrome Ore For China Rises Steeply To Higher Level Than...

Price Of Chrome Ore For China Rises Steeply To Higher Level Than US$400 / Ton CIF
= Following A Sharp Rise Of Spot Price For High Carbon Ferro-Chrome
Owing to the increasing demand for chrome ore in China, the prices of chrome ores to be sold to China are rising steeply. According to an information from China, the price of medium grade lumpy chrome ore with 42% of Cr2O3 contracted to import into China, before the May Day in China started, had risen to US$370 per ton CIF but the new price of this grade chrome ore, as offered after the May Day was over, has risen further to a level of US$400 per ton CIF China.

Also, a level of the price for high grade chrome concentrate with 48% of Cr2O3 as contracted with China has already risen to US$420 per ton CIF China, having exceeded a level of US$400 CIF. The origin of this high grade chrome ore is said as an European product but supposedly specified to be Turkish chrome ore.

The transactions with Chinese importers on chrome ores have been concluded up to shipments by the end June of 2007 but, as of April of 2007, the standard levels of prices for metallurgical grade chrome ores contracted with Chinese importers for shipments from European sources are <> lumpy ore with 42% of Cr2O3 at US$370 per ton CIF, <> lumpy ore with 38% of Cr2O3 at US$360 CIF, <> lumpy ore with 32 - 34% of Cr2O3 at US$290 CIF and <> chrome concentrate with 48% of Cr2O3 at US$420 CIF. A sharp rise of ocean freight has accelerated to soar price of chrome ore ex. European origin.

The current price of chrome ore offered from Western Australia, being near to China, is US$240 per ton CIF China for medium grade lumpy ore with 42% of Cr2O3 ( with Fe /Cr ratio of 1 : 1.5 ). This Australian chrome ore has been already contracted with Chinese importers for shipments in April - June quarter of 2007 but a small quantity of this chrome ore has been still left at the mine and the negotiation on sale of this lot is being taken place.

China has now become the largest country in the world to import chrome ore and has been still increasing the demand for chrome ore. Consequently, the supply situation of chrome ore has continued to be tight and many inquiries for chrome ore have been placed by Chinese importers before main producing countries of chrome ore in the world. The background of this aspect is that China is scheduled to produce 7.00 million tons of crude stainless steel in 2007. Therefore, it is certain to increase the consumption of chrome unit in China and spot price of high carbon ferro-chrome has risen to a higher level than US$1.00 per lb. CIF.

A trigger for this steep rise of prices for chrome ores is that the Government of India has decided to impose newly the duty of US$44 per ton on exports of Indian chrome ores, effective from the 1st March of 2007, and also risen the floor prices for exports of chrome ores from India. Furthermore, the Government has dropped a hint to control quantities of chrome ores to be exported from India.