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Nickel And Ferro-Chrome Prices Up As Stocks Have Been Depleted

Published 11/27/2014, 12:36 AM
Updated 07/09/2023, 06:31 AM
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Ministry of Economic Affairs of Indonesia said that the ban of nickel export in the world's largest nickel producing country will continue .

Tim Evans, the Chief Market Strategist of Long Leaf Trading Group in Chicago, US said that the strengthened US economic data, as well as the nickel ban by the Indonesian government will help lift nickel price further, while the demand for the metal is now noticeable rising.

According to the Citigroup's (NYSE:C) forecast that the deficit of nickel this year is at 62,400 tonnes, while the deficit next year to be estimated much more at 103,000 tonnes.

Canadian nickel mining company, expects the demand for nickel will rebound in 2015 due to export ban of nickel ore in Indonesia.

David Pathe CEO of Sherritt, said that the Indonesian export ban policy will turn the oversupply on nickel to be shortage in 2015. That is because Indonesian government insists again its attitude of export ban on International Nickel Conference


China's domestic spot prices for high-carbon 50% ferrochrome rose 80 cents/lb today up from 75 cents/lb a week ago . Shanxi Taigang Stainless Steel, Baosteel and Jiuquan Iron & Steel all raised their December purchase prices by Yuan 50/mt month on month.

Sahit Muja CEO of Albanian Minerals in New York said: Ferrochrome and chrome ore price is up in global markets today on expectations of a shortage of in China, U.S. Europe, Japan and Germany as stainless steel makers run down their raw material stockpiles. China now accounts for 40% of global ferrochrome production followed by South Africa with 35 % share of global ferrochrome production output in 2014. China itself has no chrome ore reserves to produce ferrochrome, which is an essential ingredient of stainless steel. China is facing a huge demand for chrome ore . China’s production of high carbon ferrochrome increased 1000% in ten years to over 4 million tons in 2014.


"The ferrochrome and chrome ore industry was in turmoil in 2014. The price of the key stainless steel ingredient collapsed to a a near three-year low, in 2014. Mining analysts have blamed this fall in price on a lack of demand from China. This is absolutely not true, price of chrome ore is being manipulated by China. China's exports of steel products rose to a fresh record in 2014. In the long term the manipulation by Chinese companies in chrome ore prices will have an unprecedented effect on chrome ore mining companies as they stop production chrome ore will be much more expensive in 2014". Sahit Muja said.

South Africa , Turkey, Zimbabwe, India, Albania, Oman, Iran and Pakistan are the largest exporter of raw chromite ore, chrome ore to China. South Africa holds by far the world’s largest chrome ore reserves reserves followed by Zimbabwe, Kazakhstan, Albania, India, Turkey, Finland, Oman, Russia, Iran and Pakistan.

According to Albanian, More than 500 million tons of chrome ore has been discovered in Albania from 2010 to 2014.

This gigantic of body of chrome ore, one of the largest chrome ore reserves in the world was discovered in Northern Albania. Albanian Minerals and Bytyci Shpk has intensified exploration and started mining and producing recently.

South Africa's ferrochrome exports to China has declining as a result of expensive electricity and rising costs.

The demand for ferrochrome is still growing 10% a year in China and stable demand remains in U.S, Europe, South Africa, Germany, Japan and other countries.

Albanian Minerals mining and mineral trading company currently holding 3 world's largest chrome ore reserves.

Much of the world’s ferrochrome, an alloy of chromium and iron used mainly in stainless steel production, is produced in China, South Africa, Kazakhstan, India, Turkey, Zimbabwe, Finland, Brazil, Russia and Albania.

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