China's imports of chrome ore increased significantly in April, in contrast to the slump in the manganese ore imports that same month - Fastmarkets examines the drivers behind the surge in imports and factors contributing to its divergence from the manganese market.
Chrome ore imports up on restocking activities
Shipments of chrome ore to China surged in April due to extensive restocking early in the first quarter, sources said.
China's imports of chrome ore totaled 1.5 million tonnes in April, up by 24% from approximately 1.21 million tonnes in March, according to official customs data.
Cargoes arriving in China in April were primarily ordered between January and March, when ferro-chrome producers traditionally restock, participants told Fastmarkets.
"The Lunar New Year (January 24-31) came a bit earlier this year and then it was extended by another week due to Covid-19, which increased smelters' procurement rates," a trader said.
Ferro-chrome producers in southern China, in particular, were actively restocking to ensure they had sufficient feedstock ahead of the country's rainy season (May-October), the same trader added.
Ferro-chrome smelters typically ramp up production during the rainy season to take full advantage...