Chrome ore inventories at Chinese ports surge in two months

Since 2021, due to the increase in China's ferrochrome production, the relationship between chromium ore supply and demand has been misaligned. China's chromium ore supply has continued to be in short supply in the past two years, chromium ore port inventories have been operating at low levels for a long time, ore prices have repeatedly broken through the peaks in recent years, and overseas mines are highly profitable. Stimulated by the high price of chromium ore, the supply of chromium ore has increased significantly in the second half of this year, and this month there has been a concentrated arrival at the port. According to Hainan West Asia, the chromium ore port inventory increased from 1.9395 million tons on November 10 to December 29. Japan's chrome ore national port inventory reached 2.7473 million tons, a sharp increase of 41.65% in the past two months. The shipping volume of overseas ports increased significantly. In December, the volume of bulk carriers departing from major overseas ports reached 2.2539 million tons, a year-on-year increase of 57.69%.

It is expected that China's chromium ore supply will remain at a high level in the future, and the national port inventory may approach 3 million tons. At this stage, the traditional consumption off-season has entered. Downstream stainless steel and ferrochrome manufacturers are expected to reduce production, and the demand for chromium ore raw materials is expected to decline. In addition, ferrochromium companies are already in a cost-price inversion and have low acceptance of high-priced raw materials. It is difficult for chromium ore prices to rise but to fall. In the future, as the mismatch between chromium ore supply and demand is gradually repaired and port inventories increase, chromium ore prices may gradually return, and industry chain profits will face redistribution

.For more information on ferroalloy price trends and market conditions, please contact Hainan West Asia Group.