Chromium metal prices keep dropping

BEIJING (Asian Metal) 19 Aug 05 - Chinese chromium metal prices continue dropping this week due to the weak demand from both domestic and foreign markets.

A major producer quotes USD5,750/t FOB CMP for chromium metal, down from USD5,800/t a week ago and can not accept anything below USD5,700/t. "The chromium metal demand is too weak," said the producer.Asian Metal CopyrightBEIJING Asian Metal 19 Aug 05 - Chinese chromium metal prices continue dropping this week due to the weak demand from both domestic and foreign markets.Asian Metal Copyright "We made few deals two weeks ago."

The producer quotes RMB53,000/t in domestic markets, but has not received any orders since last week.

With about 300t of the material in stock, the company halted for maintenance in August and will resume production in September.

A chromium trader has also reduced its quotations from USD5,900-6,000/t to USD5,800/t FOB CMP last week, but can not accept below USD5,750/t. "Foreign buyers are on holiday now," said the producer, "there are few trading activities in foreign markets and demand is weak.Asian Metal Copyright .Asian Metal Copyright So we had to reduce the price."

Meanwhile, a dealer now sells chromium metal for RMB55,000/t and still has about 2t of the material in stock. "The price dropped at unexpected moment, and we are running at a great loss, because we purchased the material for RMB56,000/t from smelters," said the producer.