The market place: reserved for many years to come
The Chinese Spring Festival holiday has become a long-awaited ending of a chain of Christmas & New Year’s holiday worldwide after which the temp of the market trading is turning back to its normal conditions. According to the international market, South African chrome ore prices and the Turkish chrome ore prices temporarily stabilized. The Mining-Bulletin Magazine gives a pretty clear view on the international market situation with the chrome ore pricing. It’s reported that from the beginning of March, when the price have dramatically increased, there is no big movement of the chrome ore market. The South African chrome concentrate suppliers’ offer is relatively strong and they maintain their prices at present and even continue its increasing based on the rigid demand.
On the other hand, other chrome ore market prices are also strong. Turkey is the largest supply country of mainstream chrome ore lumps. And their chrome ore mining is reduced in winter period, so they do not have any chrome ore stocks on hand. They would like to raise their offers.
As the exhibition contractors admitted, before the fair started there was some hesitance due to trade sanctions being imposed unilaterally by US and threats by both China and Europe to retaliate. However, there were crowds of visitors registering and trying to enter the fair around midday at the very first day.
Over 900 exhibitors from 44 countries and regions exhibited their goods and services at the fair this year. Among them there were four Russian companies including JSC “Novotroitsk Plant of Chromium Compounds”, the regular exhibitor. Traditionally at their stand it was difficult to sit down and have any meaningful conversations for much of the time as enquiries were prevalent keeping exhibitors on their toes. The interest of the visitors was bent to Sodium Dichromate manufactured by JSC “NPCC” that is used for tanning agent production as well as to the tanning agent itself manufactured by Novochrom Ltd. – the faithful partner of JSC “NPCC”. Nevertheless other products of the brand NPCC wasn’t left unattended. Those who wished could not only to look into the specifications for all the range of the products offered by JSC “NPCC”, but to receive samples for labour tests at the stand as well.
There were plenty of themes to be discussed but the main one was surely the price policy of JSC “NPCC”. Though the buyers are optimistic about the chrome compounds prices they still find it is hard to make a deal. In the face of continuous rising price of raw materials some market participants expect the mines to release higher prices in the coming weeks.
As APLF is a barometer of the market place, one could draw the conclusion that the throngs of visitors were intent on finding what prices really were as lower prices tend to stimulate latent demand. However, the enthusiasm and throngs of visitors do not make sales or sign contracts. One of the fair reviews states that the plenty of bids and offers is almost a case of “never the twain shall meet” as buyers continued to hold out for lower prices as the hours of the fair ticked by. It is true that everyone wants to get some benefit from the deal but it doesn’t mean that the buyer and the seller can’t make a deal on mutually beneficial conditions. Such fairs and exhibitions support the market participants in sharing the helpful information and in negotiating the win-win deals. That’s how the management of JSC “NPCC” reasons and they don’t lose.