A sudden reduction in published estimates of chrome ore stock in China has contributed to a recovery in prices for the steel-making raw material since September after earlier high estimates had weighed on prices, market sources told Fastmarkets MB.
Published Chinese chrome ore stock estimates from Chinese price reporting agency Ferroalloynet have dropped below the 3 million tonnes reported late in September. This was a sharp drop from more than 3.8 million tonnes at the end of August and 3.4 million tonnes late in July.The large reduction in stock estimates has raised questions among some market participants about whether the high published estimates were overstated and were subsequently revised after they had already influenced prices.At the same time, others argue that the fall in published stock estimates is simply the result of a stock drawdown.Fastmarkets MB's UG2 chrome ore index, cif China stands at $172 per tonne compared with $156 per tonne on August 31 and $183 per tonne on July 27.Fastmarkets MB's price assessment for Turkish lumpy chrome ore, cfr China edged up to $230-240 per tonne on Friday October 12 from $220-230 per tonne on August 31...