A proposed tax on chrome ore exports from South Africa was the driving factor in the country's UG2 chrome ore market in the week to Tuesday November 3.
Fastmarkets'
chrome ore South Africa UG2 concentrates index, basis 42%, cif China, was $139 per tonne on Tuesday. This was up by $3 per tonne (2.2%) from $136 per tonne in the preceding week.
The South African government
has proposed an export tax on chrome ore but it has not clarified when it would be implemented or at what rate.
Market participants took various approaches to the market amid the resulting uncertainty, with some buyers seeking to procure material before any potential price rise resulting from an export tax.
"Buyers know the previous prices at $135 [per tonne] or below are gone. Some of them took the initiative to procure [material], while others decided to sit out of the market for now," a trader said.
Some producers took advantage of the...