WEEKLY REPORT
Chrome Ore market prices, insights by origin on the 28 November 2021.
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CHROME MARKET ANALYSIS
Internationally increased inflation remains persistent, driven by supply chain failures and Central Bank Quantitative easing. As a result, markets had anticipated Central Banks moving to a cycle of anti-inflationary interest rate increases. New Zealand, Norway, South Korea, Mexico, Brazil and the South African Central Bank have increased rates. However, the emergence of the OMICRON COVID variant has resulted in a rapid reversal of market expectation in this regard.
In line with its commitments to curtail spending, the South African Treasury has kept welfare spending and the civil service wage bill constant in the Medium-Term Budget. The IMF increased the GDP growth forecast for SA to 5% but with a projected slowdown in 2022 to 2.2% as the recovery from the pandemic stabilises.
Iron ores and concentrates exported from South Africa decreased by 1% year-on-year in September 2021 and the Construction Input Price Index (CIPI) for structural and reinforcing steel in South Africa increased by 34,8% year-on-year in October 2021. The fourth quarter for the stainless-steel market is usually an off-peak season. Coupled with a resurgence of COVID cases, the expectation would be that demand for steel into the year end is lower.
(Report by W. Kieser)
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