SwapX Weekly Report 24/01/2022
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)