Silicon social inventories unchanged at 75,000 mt

[SMM Express] Zimbabwe's long-standing strategy to expand domestic chrome beneficiation continues to attract industry attention as the country seeks to increase local ferrochrome production and capture more value from its abundant chromite resources. The policy direction remains centered on encouraging in-country processing while gradually reducing reliance on exports of unprocessed chrome ore. Market participants continue to monitor investment in new smelting capacity and the implementation of beneficiation measures, as these developments could progressively reshape regional chrome ore trade flows. If Zimbabwe succeeds in increasing ferrochrome production, a larger share of domestically mined chrome ore would be consumed locally, potentially reducing ore availability for export while increasing the country's presence in the global ferrochrome market.

[SMM Express] South Africa's ferrochrome industry remains under close market watch as producers gradually advance production recovery following the implementation of preferential electricity tariffs for major smelters. The lower power tariff has improved the operating environment, supported the restart of some idle furnace capacity and eased immediate pressure on the sector after a prolonged period of production cuts driven by high electricity costs. Market participants, however, remain cautious over the pace of recovery. Although the tariff relief is expected to support higher ferrochrome output in the short term, producers continue to face challenges from global price competition and operating costs. The speed at which additional smelting capacity returns to operation will be closely monitored, as stronger ferrochrome production could gradually increase domestic chrome ore consumption and influence South Africa's export mix.

As of this Friday, SiMn 6517 (cash) in north China was 5,650-5,700 yuan/mt, down WoW; SiMn 6517 (cash) in south China was 5,700-5,750 yuan/mt, down from last Friday, and SiMn 6014 (cash) in south China was 5,350-5,400 yuan/mt, flat WoW. Recently, SiMn futures were weak and moved sideways in a narrow range, the market was in a strong wait-and-see mood, spot prices fell, and futures and spot prices were largely aligned.