SwapX Weekly Report 21/02/2022
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)