SwapX Weekly Report 03/11/2021
Chrome Ore market prices, insights by origin on the 03 November 2021.
CHROME MARKET ANALYSIS
At current prices, iron ores and concentrates exported from South Africa increased by 12,3% year-on-year in August 2021. Furthermore, at current prices, the Construction Input Price Index (CIPI) for structural and reinforcing steel in South Africa increased by 37% year-on-year in September 2021. Internationally, rising energy prices and supply-chain bottlenecks fuel global inflation fears and tightening monetary policy. Likewise, inflation in the US hit a 30-year high in September. In addition, China’s main driver of the steel market fell to 73.8m tons last month, down by 11.4% from August and 21.2% from the year before.
Long term trends indicate a push towards a low-carbon economy both in Europe and China. Therefore, recycled metals as a low carbon option compared to mined metals is an essential strategic solution for governments focused on carbon reduction. In conclusion, disregarding public policy on carbon emissions.
At the forefront of financial markets is the hedge against inflation, including financial assets and tangible assets such as mining stocks, commodities and Bitcoin.