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According to ETI KROM, 275USD/mt for 42% lumpy cr ore and 300USD/mt for cr concentrate should be the bottom price levels on CIF Chinese main ports basis for the chromium ore miners in order to open new mines and make new investments.
Lower than these prices, the cr ore miners can only survive due to the increased over-all costs in 2013. Current lower cr ore prices will cause the new mining investments delayed for some period. Therefore, these investment delays will boost the chrome ore prices in the long-term because of decreasing of production in quantity and depleting of current and old mines.
The low grade lumpy chrome ore producers have been bleeding at cost curve level and most of them are yet to start moving out of the market and stalling production.
In the winter season, most of the producers shut down their facilities and will come back to production in the middle of April. Due to the decreasing prices, this year we expect that many companies will not re-start their production of chrome ore. We think that current chrome ore price levels are not sustainable for the long term. Therefore, ETI KROM recommends that the market should be sustainable for everyone in the cr industry. Chinese buyers shall remember that without any new investments for cr ore mining, there will be a very tough time for Chinese cr industry in the medium term.