LONDON Eti Krom AS
expects higher chrome ore prices in the first quarter of 2013,
the Turkish producer said as it announced prices for January
Turkish chrome production will
fall over the winter, but production costs will rise due to
lower productivity and higher labor costs, according to Robert
Yildirim, president of Eti Kroms parent company,
Istanbul-based Yilidirim Group.
Eti Kroms prices for
42-percent grade lumpy ore will be $260 to $265 per tonne
c.f.r. Chinese ports in January, rising to $270 to $275 per
tonne in February and $280 to $285 per tonne in March.
China imported 7.9 million
tonnes of chrome ore from January through October 2012,
unchanged from 2011, even as domestic ferrochrome production
increased, Yildirim said.
"In other words, Chinese
ferrochrome producers have consumed a lot of chrome ore from
stocks at Chinese ports since ferrochrome production in China
increased despite fewer imports from South Africa," he said.
"We believe that the stocks are mainly South African ores.
Therefore, Chinese buyers will demand more higher-grade ore and
low-grade lumpy ore from Turkey, Pakistan and Albania. That
will trigger higher ore prices in the first quarter 2013."
Turkish chrome ore, basis 40 to
42 percent, is trading at $230 to $250 per tonne c.f.r. main
Chinese ports. That is unchanged since Sept. 14, when prices
fell $10 at each end of the trading range.
A version of this article was
first published by AMM sister publication Metal