A six-week price rally in the UG2 chrome ore market since late June was reversed in the week to Tuesday August 17, mainly due to falling demand for material from both the seaborne and portside markets.
Fastmarkets' calculation of the
chrome ore, South Africa UG2 concentrates index, basis 42%, cif China, nudged down by $2 per tonne to $182 per tonne on August 17, from $184 per tonne one week earlier.
The index had risen for six weeks in a row from $158 per tonne on June 29 to $184 per tonne on August 10, a total gain of $26 per tonne (16.46%).
"The rise of previous weeks seems to be slowing down. The uncertainty surrounding the outbreak of Covid-19 is probably starting to have an effect, resulting in slower demand - especially in Asia," a chrome ore producer said.
Market participants on both buy and sell sides told Fastmarkets that it was hard to conclude sales at the previous price, due to falling demand after earlier purchases.
"[The market for] chrome...