More enquiries for chrome ore but still few deals in China
2008-11-21 08:56:55 【Print】
BEIJING (Asian Metal) 21 Nov 08 - Currently Chinese traders reported to Asian Metal that they received more enquiries from domestic buyers than before, but there were still few deals concluded recently.
A Shanghai-based trader reported that they received an enquiry for 1,000-1,500t of South African concentrate chrome ore 42% at RMB33/dmtu (USD4.17/dmtu) ex ports, but the source does not want to sell the material at below RMB34/dmtu (USD4.30/dmtu) ex ports. "The purchasing volume from domestic consumers is increasing, though we still concluded few deals recently," said the source.
The source only sold 120t of South African concentrate chrome ore 42% at RMB34/dmtu ex ports last week. According to the source, they refuse to sell below RMB24/dmtu (USD3.03/dmtu) ex ports for Omani lumpy chrome ore 34%, though some buyers want to get the material at RMB21/dmtu (USD2.65/dmtu) ex ports. He heard that some sold Omani lumpy chrome ore 36% at RMB27/dmtu (USD3.41/dmtu) ex ports recently.
"We do not want to sell our materials at low price level, as we want to stock some materials, waiting for the market to recover," said the source, adding that they offered above RMB50/dmtu (USD6.32/dmtu) ex ports for Pakistani or Turkish lumpy chrome ore 42%, but they did not conclude any deals at those prices.
The source just signed a contract for 1,000-1,500t of Omani lumpy chrome ore 34% at about USD70-80/t CIF China with the shipment arranged in mid December. "Although the enquiries from domestic consumers seem to be more than before, I do not think chrome ore market will warm up before the end of this year," said the source.
A Jiangsu-based trader confirmed the more enquiries from domestic buyers but still few deals concluded. "The price of chrome ore in Chinese main ports is so cheaper that some smetlers want to purchase the material at a very lower price, but now I do not think many traders are underselling their stocks now, and the price of chrome ore seems to be stable basically and increaes a little bit," said the source.
The source still offered RMB50-55/dmtu (USD6.32-6.95/dmtu) ex ports for Pakistani lumpy chrome ore 40-42% and RMB33-35/dmtu (USD4.17-4.42/dmtu) ex ports for South African concentrate chrome ore 42%.
