[SMM Weekly Review] Steel Bidding Prices Remain Flat, Chromium Market Operates Steadily

On May 23, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,000-8,100 yuan/mt (50% metal content); in Sichuan and north-west China, it was 8,100-8,200 yuan/mt (50% metal content), unchanged from the previous trading day. This week, the ferrochrome market was generally stable with slight fall, with retail prices experiencing a slight correction and inquiry sentiment rebounding. The weekend steel tender price closed flat at 8,095 yuan/mt (50% metal content), in line with previous market expectations, helping to stabilize the ferrochrome market. The impact of the favourable macro front from last week gradually faded, with the downstream stainless steel market returning to a fundamental oversupply situation and end-use consumption remaining sluggish, affecting ferrochrome procurement. As a result, the ferrochrome purchasing atmosphere was mediocre, with ferrochrome producers and traders feeling frustrated and lowering their retail quotations for ferrochrome. However, as there were no significant production cut plans in the downstream stainless steel sector, planned production remained at high levels. Coupled with the flat closing of steel tender prices, confidence in the ferrochrome market was supported. Chrome ore prices remained stubbornly high, with cost pressure limiting the downside room for ferrochrome prices. It is expected that the ferrochrome market will operate steadily in the short term.

On the raw material front, inquiry sentiment heated up this week, with trading volume increasing. On May 23, 2025, the spot quotation for 40-42% South African powder at Tianjin Port was 61-62 yuan/mtu, with futures prices at 290-300 US dollars/mt; the quotation for 48-50% Zimbabwean powder was 62-63 yuan/mtu, with futures prices at 350-360 US dollars/mt, unchanged from the previous trading day; the spot quotation for 46-48% Turkish chrome concentrate powder was 68-70 yuan/mtu, down slightly by 1 yuan/mtu. In the first half of May, ferrochrome producers mostly relied on existing inventory for production, with generally low acceptance of high-priced chrome ore, resulting in limited chrome ore procurement and sluggish inquiries. Under such circumstances, chrome ore traders offered discounts to unload inventory, slightly lowering their quotations and increasing the room for price negotiation and counter-offers. However, influenced by the significant increase in ferrochrome production, there was a rigid demand for subsequent chrome ore restocking, and inquiry enthusiasm gradually rebounded this week. In terms of chrome ore inventory, the total port inventory of chrome ore this week was 2.7938 million mt, down 6.56% WoW, with reduced chrome ore inflows and increased outflows from warehouses. In addition, the flat closing of steel tenders bolstered the confidence of chrome ore traders in refusing to budge on prices, and they are awaiting guidance from the next round of overseas market quotations for chrome ore. It is expected that the chrome ore market will operate steadily in the short term.