The UG2 chrome ore price retreated for the first time since March 20 due to reduced buying interest in contrast to the consistent liquidity over the past few weeks.
Fastmarkets'
chrome ore South Africa UG2 concentrates index basis 42%, cif China fell to $169 per tonne on Friday June 12, from $170 per tonne a week earlier, putting an end to a five-week uptrend.
The market was described as quiet following previous periods of higher trading and while participants wait for the ferro-chrome tender prices from Chinese steel mills for July.
"This week is far quieter than the past and participants' sentiment is much more negative than we anticipated," a trader source said.
"Large-sized ferro-chrome producers in China hold sufficient ore at hand that can last two to three months. Traders were cautious in making orders because of the decreasing demand. It is very unlikely for sellers to conclude any deals above $170 [per tonne]," the trader added.
The lower purchasing appetite also weakened the portside market. A deal of 5,000 tonnes of portside chrome ore was heard...