Prices for UG2 chrome ore in China rose strongly for the second consecutive week over the seven days ended Friday July 26, but weak profitability for smelters raised questions about the durability of this recovery.
UG2 ore market in China increases by $7 per tonne Domestic spot alloy price rises in China, imported alloy stable High carbon alloy prices in Europe, US stableThe chrome ore price continued to rise over the week ending July 26 amid bullish sentiment and restocking activity among downstream consumers.Fastmarkets' chrome ore, South Africa, UG2 concentrates index, basis 42%, cif China, rose by $7 per tonne to $153 per tonne on July 26, up by $12 per tonne compared with two weeks earlier."We were initially surprised by the scale of the movement last week but the momentum continued into this week," a producer said.Some smelters were reported to be running at a loss, indicating resistance to further price rises in the future."Plants haven't received cargoes bought at low prices and they are not making profits with the current ferro-chrome price," one market participant said. "Now the ore price...