Spot inquiries in Asia for chrome ore and ferrochrome have decreased compared to the previous weeks, but tight supplies underpinned further price increases, market sources said Friday.
Two chrome ore mine sources said inquiries from Chinese buyers have fallen, with one of them saying that there were no inquires this week.
"Chinese traders are selling cargoes they bought earlier," said one miner.
Sources said South African 42% UG2 ore was heard trading at $390/mt CIF China this week, flat from a week ago.
An Indian producer said 50%-52% ore was trading this week at $470-$490/mt CIF China. S&P Global Platts has not been able to obtain last week's data. A month ago, it was roughly $460/mt CIF.
But producers were confident that prices will rise further.
"Ore stocks at Chinese ports remain low. Buying may have slowed down but there is no sign of stocks rising sharply. The ferrochrome pipeline remains empty," said one producer.
"Prices will definitely continue to go up to January, but not sure after that," said a second producer.
Ferrochrome spot trade was more active.
South African origin 48%-52% charge chrome was offered at around 135 cents/lb CIF China, but a deal was not done, sources said.
Platts assessed the spot price of 48%-52% charge chrome at 120-135 cents/lb CIF China, up from 118-120 cents/lb CIF China a week ago.
Indian origin 58%-60% high-carbon ferrochrome was sold at 120 cents/lb CIF China for 2,000-3,000 mt, December loading. Another deal was reported at 118 cents/lb CIF China, also for December loading.
The 58%-60% grade was assessed at 118-120 cents/lb CIF China Friday, unchanged from a week ago.
Japanese spot prices rose to 119-121 cents/lb CIF Japan Friday, from 118-120 cents/lb CIF Japan a week ago.
A Japanese steelmaker issued a buy tender for several hundred tons of 10-50 mm lumps containing minimum 60% chrome, 3%-4% silicon, 8%-9% carbon, 0.03%-0.04% phosphorous, and 0.05% sulfur, for delivery over January-March 2017, sources said.
The tender was awarded at around 120 cents/lb CIF minor north Japan port, said one source, but Platts has not been able to confirm with the buyer.
A Japanese trader said an Indian producer offered 124 cents/lb CIF Japan for material of similar specification, loading January from Visakhapatnam. He rejected the offer.
One Indian producer said a Japanese buyer was looking to buy at 84 cents/lb CIF Japan, which he rejected.
