Mining News - South African 40%-42% UG2 chromite concentrate traded at $190/mt CIF China this week, for possibly several thousand tons, a Chinese trader said. In comparison, a trade was reported last week at $180-$190/mt CIF China.

Chinese traders said the rise in UG2 prices was a result of soaring ferrosilicon and silicomanganese prices.

A deal for Indian high carbon ferrochrome was reported at $0.88-$0.90/lb CIF China this week, between an Indian producer and a Chinese steelmaker. The deal was for several thousand tons for loading in January, and was for 10-150 mm lumps containing minimum 58% chrome, 4% silicon, 8%-9% carbon, around 0.03%-0.04% phosphorous and 0.05% sulfur.

S&P Global Platts assessed the spot price of 58%-60%-Cr ferrochrome at $0.87-$0.90/lb CIF China last week, up 4.73% week on week. This week`s assessment will be published on Friday.

An Indian seller said the strength in ferrochrome prices was due to firmer UG2 prices.

Platts does not assess UG2 prices.

"The overall Chinese domestic chrome ore market was still in a supply-demand equilibrium over the last few weeks," a trader in China said. "Traders are expecting further price rebounds," he said.

"The uptrend is not clear at this moment. More deals will emerge when the trend is more distinct; probably end of this week, or next week. There might be a demand surplus later, at the end of December," the trader added.

Market sources said they were waiting to see major Chinese steelmakers` monthly tender prices for ferrochrome, which will likely be announced in January. A Chinese trader, however, said there was positive momentum in the uptrend of chrome ore prices regardless of tender price movements.