Spot prices of South African 42-44% chrome ore, known as UG2 (upper group 2), have risen by 10-20% from March as platinum mine strike continues, producer and trade sources said Friday.
UG2, a byproduct of platinum, was heard trading at around $180/mt CFR China this month, said a South Korean trader. The price was for a cargo transported on a bulk vessel, the trader said, adding that prices for container ship transports were lower. Other trade sources said there was at least $10/mt difference between container and bulk ships.
Prices were hovering at around $150/mt CFR in March, sources added.
A South African producer source said UG2 prices were up 20% from March, but declined to elaborate on the exact price level and the deal terms.
Meanwhile, a Japanese trader said deals at $180/mt CFR were not possible for UG2, although LG6 (lower group 6) ores with over 43% chrome content could be trading at this level.
Platts has not been able to confirm any UG2 spot deals.
South Africa's chrome ore exports to Asia were 3.8 million mt over January-April 2014, down 27% year-on-year from 5.2 million mt, according to government data.
Oman-origin 32-34% ore was traded at around $155/mt CFR China, said one Indian producer source, who typically buys 500-1,000 mt/month. South Korean and Japanese traders concurred.
Turkish origin 42-44% ore was heard at above $280/mt CFR, while Pakistani ore below $280/mt CFR, the South Korean trader said.
The South Korean trader added while UG2 prices have risen reflecting tight supplies following a five-months platinum mine workers strike, spot prices of other grades remained flat.
"There is interest for South African cargo, others still very weak," he said.
A second Japanese trader said prices of all grades have risen but only marginally.
"The price rise remains marginal despite the tightening supplies," he said.
