Mining-Bulletin
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EKIN MADEN: Chrome Market Needs Support from Suppliers and Endusers

Time:Tue, 05 Mar 2013 10:22:22 +0800

Today the chrome market is in panic by the unpredictable price volatilation. The leading Turkish chrome ore supplier EKIN MADEN advises that this situation gives big damage to all the key players of this market. Chrome ore producers, traders and producers of ferrochrome.

It is very difficult to take position at today's chrome ore market. All expectations may change by a sudden price change at major stainless steel producers' tenders. But how will this effect the market? The uncertainity makes this market non-interesting for the investors. At the end of the day, we will see lack of interest for producing and making investment.
2012 was a tough year for all the chrome producers in Turkey as it was all around the world. The prices fell down sharply and most of them had to close their mines and plants. Only the big producers could stand this price pressure. But for how long? If the prices will fall back to 2012 September-October prices then the big invesments of chrome will stop producing for sure. And the ones who had stopped due to the winter conditions will not re-open in 2013 Spring.
This situation will cause undesired higher prices at the market in a short period of time. Turkey has 20% market share in total for Chinese chrome ore import. And it has a great importance to maintain the FeCr quality. Less Turkish material at the market will cause extreme prices and this will seriously effect the Stainless Steel market.
Turkish market is now effected by the winter conditions for the last 2-3 months. Altough this year the climate is better then 2012, still most part of Turkey is under snow and miners can not produce.
All major FeCr plants increased capacity by new investments at the end of 2012. The Chinese government is pushing urbanization construction, 45 billion USD in urban rail transit projects approved and starting construction in the early 2013. China will use more stainless steel to produce more metro vehicles and some stainless steel metro vehicle lines will be on operation soon. This also means 1 billion USD new consumption of stainless steel.
Therefore EKIN MADEN believes that there is no major problem at Stainless Steel and Ferro Chrome market. And they discussed with their domestic suppliers and have decided to hold their monthly 35.000 MTS chrome exports until market turns to normal situation just like before the Chinese New Year. EKIN MADEN also added that they will support the other miners financially during this difficult period.
EKIN MADEN finally advises that instead of pulling the strings, suppliers and end users should support each other and do their duty to keep this market alive.
(Made by EKIN MADEN, Authorized to publish by EKIN MADEN)