MMCZ to set up chrome price control team

THE Minerals Marketing Corporation of Zimbabwe (MMCZ) says it will soon establish a price-regulating team to control chrome prices for the international and domestic markets.

BY KUDZAI MUCHENJEKWA

Speaking at a chrome small-scale mining sector consultative meeting in Harare yesterday, MMCZ deputy general manager-marketing Masimba Chandavengerwa said local smelters had been taking advantage of the small-scale miners due to the drop in the chrome price on the international market.

“When the commodity price goes down, especially in China, the small smelters take advantage of the small-scale chrome miners by offering lower prices. We had a meeting with Zimbabwe Miners Federation in which we discussed that we want a team that will be looking at pricing of chrome on the export market and also the pricing in the local market to benefit the small-scale miners,” Chandavengerwa said.

Chrome demand on the international market has been going down due to stockpiles in China, which is a major buyer and this has affected Zimbabwe since it is a major supplier.

Chandavengerwa also stated in his presentation that the chrome price went down by $5 per tonne this month compared to last month due to the increased stockpiles in Chinese ports amounting to three million tonnes.

He highlighted that the reason for the consultative meeting was to hear the challenges being faced by the small-scale chrome miners.

“We wanted to understand the challenges that the miners are facing in terms of production and also to discuss the market dynamics,” Chandavengerwa said.

Zimbabwe has been facing many challenges in marketing chrome which include shortage of foreign currency, sanctions and restricted payment terms, among others.

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