2 November 2022 – Ferrochrome prices have stabilised recently and have increased by more than 16.5% since mid-September. Among other things, this could be related to a supply problem with chrome ores. After nickel had already risen by more than 3% in October, it opened November with a drastic upward price jump.
Ferrochrome stabilised, but supply secured?
Ferrochrome prices had stabilised recently, hinting at a positive recovery. From mid-September to early November 2022, for example, ferrochrome prices in China had risen by more than 16.5%.
Most important chrome ore supplier faces repeated difficulties
Most recently, the long strike by South African dockworkers meant that, according to the Minerals Council South Africa, about 360,000 MT of iron ore, coal, chrome and ferrochrome could not be transported every day. Working through this backlog is likely to take time, and is not the first event that has put South African ports behind schedule in 2022.
Logistics central to metals and mining sector
Such challenges in the major industries of the major economies highlight the central role that logistics plays, and not only in the mining sector.
Ferrochrome prices under upward pressure
The events in South Africa are therefore likely to have an impact on the ferrochrome price for some time to come. And they will also drive it up further.
Nickel price jumps significantly upwards
The conglomerate of current events surrounding nickel has already catapulted the price on the London Metal Exchange back above the 23,000 dollar per tonne mark yesterday, 1st November. A gain of more than 6.3%. The Asian SHFE had already closed with significant gains in nickel on 1 November.
SHFE nickel up by up to 5%
In reaction to the significantly higher nickel prices in Europe, the futures in Asia continued their upward movement today and closed with a plus of up to 5%, depending on the contract.
LME nickel at more than $ 24,000 per tonne
On the LME, nickel is already at more than $ 24,000 per tonne this morning, or a gain of more than 2.15% and had already ended October with a gain of 3.3% over the previous month.
Nickel is one of many commodities whose global inventories are currently very low and are considered scary by some market observers, as they account for only a handful of days of global supply.
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