Chrome ore export duty in South Africa may cause FeCr prices to go up

摘要

On October 22, South Africa approved the imposition of a chrome ore export duty in order to support the local FeCr industry. The country is the biggest chrome ore and FeCr supplier in the world (more than 50 of the overall global chrome ore sales and around one-third of FeCr international output). The amount of the duty has not been set by late October, but chrome ore quotes will certainly come up. Import prices for South African chrome ore (40-42 Cr) have been at $135-138/t CIF China in October. The next month's upturn is hard to predict, but it will be proportional to the amount of the export duty. The duty, however, may be harmful to the industry: merchants may have to pay a part of the expenses it will cause as the competition is still intense in the chrome ore market.