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Chrome ore market prices and analysis

As of May 26, Shipment data showed that 681,000 mt of Chrome Ore to China was from South Africa, which is a 23% decline from the previous month. As a result of recent flooding in KwaZulu-Natal, the quantity of Chrome Ore leaving the ports of Durban and Richards Bay has declined significantly. Hence, the most significant portion of exported Chrome Ore was from the port in Maputo. In addition, the delivery time for container vessels from South Africa to China has increased significantly. The average shipping time is 31 days, an increase of 143% compared with April.

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The Future Expected Prices

Chrome Ore inventory at Chinese ports as reported on 13 May 2022, shows a total decrease in stock of 191,000 mt.

The future expected prices for mines in South Africa continue to rise. However, ferrochrome plants in China have limited acceptance of high prices, so the actual trade of Chrome Ore could be more cautious.

The Chinese port inventory is low, and the miners are unwilling to reduce the quotation due to the difficulty of subsequent arrival at the ports. At present, the spot market is unchanged. Furthermore, due to global uncertainty and weak domestic demand in Chinese manufacturing, spot prices for Chrome Ore remain intact this week.

Chrome Ore Market Report

Last week also saw the rise in price for the ore market. Chromium ore market, the price of 40-42% Concentrates, has kept rising for 10 consecutive weeks since January, 2021. SA origin was quoted at $265USD/DMT CIF CMP, an increase of 5usd per ton. It kept the trend of rising amid the news of Durban port floods.

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China Chrome Ore Market Overview

In this week’s Chromium ore market prices and industry news report, find the Latest Market News  regarding the current lockdown situation in Shanghai and the possible impact. The current market observations in the market.  The Chrome ore Stocks in Tianjin Port,  the reported prices and transactions in Qinzhou Port, and the Chrome Ore Prices for QTR1 Jan 2022 – March 2022

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SwapX Weekly Report 22/03/2022

WEEKLY REPORT

Chrome Ore market prices, insights by origin on the 22 March 2022.

CHROME MARKET ANALYSIS

South Africa is still China’s most crucial chrome ore import supplier, accounting for 81% of China’s total chrome ore imports in 2020-2021. Manufacturing in stainless steel, chemicals, pigments, refractories, and foundry sand have increased the utilisation of chromium ore over recent years. Likewise, expanded market growth in the automotive industry is placing increased demand on metal alloys using chromium ore.

Mining production in South Africa increased by 0,1% year-on-year in January 2022, with Chrome Ore the most significant contributor increasing 11,6% year-on-year in the volume of mining production.

The South African Reserve Bank is likely to raise interest rates by 25 bps to 4.25% to battle inflation, which is to average 5.5% this year before easing to an average of 4.4% in 2023. Furthermore, efficiency at SA ports and rails worsens with Russia’s war on Ukraine.

(Report by W. Kieser)

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SwapX-Weekly-Report-06-03-2022

SwapX Weekly Report 06/03/2022

WEEKLY REPORT

Chrome Ore market prices, insights by origin on the 06 March 2022.

CHROME MARKET ANALYSIS

With all eyes upon Europe and the Ukraine/Russia conflict, an expectation is that sanctions imposed on Russia will benefit alternative markets. While Russia is a relatively small producer of Chromium, producing less than 1 m tons to South Africa’s 20m tons in 2020, it is likely that the E.U will look to South Africa as an alternative market to satisfy demand.

The South African construction sector is experiencing high inflation in line with international trends. The Construction Input Price Index (CIPI) for structural and reinforcing steel increased by 25,7% year-on-year in January 2022. Any escalation in the current conflict threatens to further disrupt global supply chains, which are a significant driver of the current trend.

The European ferroalloys market pricing trends in February 2022 for chrome alloys were increasing.
The U.S. Federal Reserve is expected to commence with interest rate increases from March 2022. However, any economic slowdown in the U.S economy, potentially as a result of the current geopolitical crisis may result in the Fed adopting a more dovish

(Report by W. Kieser)

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SwapX-Weekly-Report-21-02-202

SwapX Weekly Report 21/02/2022

WEEKLY REPORT

Chrome Ore market prices, insights by origin on the 21 February 2022.

CHROME MARKET ANALYSIS

The Chrome Ore market continues to be an important commodity sector in South Africa and is the sixth-largest commodity exported by volume. 

Globally, 40 million tons of Chrome Ore is consumed annually. As the demand for quality stainless-steel materials continues to outpace supply, Chrome Ore will continue to serve as an essential commodity in the export market for South Africa.

Finance Minister Enoch Godongwana faces tough decisions as Treasury needs to find ways to close SA’s yawning fiscal deficit. There is speculation that tax increases to be tabled in the annual budget on 23 February could see an increase in VAT. Analysts hope that increased revenue from mining production in 2021 may help to reduce the 2022 budget deficit by approximately R80 billion from previous projections, helping to offset the possibility of any increase to VAT. The most significant concerns for mining production and tax revenue for 2022 are efficiency at SA ports, rails, and local electricity generation.

(Report by W. Kieser)

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SwapX-Weekly-Report-06-02-2022

SwapX Weekly Report 06/02/2022

WEEKLY REPORT

Chrome Ore market prices, insights by origin on the 06 February 2022.

CHROME MARKET ANALYSIS

SARS trade statistics released for December 2021, reported a decrease of 4% in exports between November and December 2021. The top five countries receiving South African exports were: United States (11,4%); China (8,8%); Germany (8.2%); United Kingdom (5,8%) and Japan (5,5%). In the week of the 25th of January 2022, strong demand, and limited availability of South African Chrome Ore to China pushed prices up by more than 6%.

By 2030, China is predicted to surpass the US as the world’s largest economy by GDP. For now, China has just surpassed the European Union with GDP for 2021 reported at $17.7 trillion to the EU’s $17 trillion. Most of China’s economic growth for 2021 was due to industrial output and exports.

The IMF expects global GDP to expand by 5% in 2022. Economic think tank Capital Economics is less optimistic predicting a growth rate closer to 4%.

(Report by W. Kieser)

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SwapX-Weekly-Report-24-01-2022

SwapX Weekly Report 24/01/2022

WEEKLY REPORT

Chrome Ore market prices, insights by origin on the 24 January 2022.

CHROME MARKET ANALYSIS

STATS SA latest release for November 2021 indicates an overall mining production increase of 5,2% year-on-year. However; mining production of Chrome Ore fell by 2,6%. Year on year sales of Chrome Ore showed an increase of 4% in November 2021. The value of building plans passed (at current prices) increased by 43,6% (R29 billion) during January to November 2021 compared with the prior year, this is likely to result in an increased local demand for steel.

The US reported an increase in inflation to 7% in December 2021, the highest since 1982. Higher inflation is likely to lead to a reduction in US monetary stimulus from March 2022 coupled with rising interest rates.

Chinese President Xi Jinping has asked the US not to raise interest rates. Reasons being primarily due to China’s debt burden and the reduction in Chinese GDP to 4% year-on-year in Q4 2021. The People’s Bank of China cut its one-year loan prime rate for the second time in a month.

(Report by W. Kieser)

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SwapX-Weekly-Report-10-01-2022

SwapX Weekly Report 10/01/2022

WEEKLY REPORT

Chrome Ore market prices, insights by origin on the 10 January 2022.

CHROME MARKET ANALYSIS

Environmental, social, and governance (ESG) funds focus on sustainable investing in companies meeting ESG requirements, including lower carbon footprints. The transition to low-carbon investing presents new challenges for South Africa’s extractive mining industries. The mining and metals sector will continue to see an incentive to optimise mining equipment and cut electricity consumption for 2022.


As reported in the Commission of Inquiry into State Capture, corruption in South Africa is a serious concern for the mining sector due to the negative impact on critical infrastructure, amongst other factors.


China’s Ministry of Industry and Information Technology recently issued the “14th five-year plan”. The plan includes a decrease in the production capacity of key commodity raw materials, such as raw steel and cement. Furthermore, to implement energy-saving reviews such as reducing fossil fuel consumption.

(Report by W. Kieser)

SwapX Weekly Report 10/01/2022
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