High-Carbon Ferrochrome Production Plummeted in February, Steel Tendering to Boost Production in March [SMM Analysis]

According to SMM data, in February 2025, China's high-carbon ferrochrome production further declined, down 5.61% MoM and 5.86% YoY. Among them, production in Inner Mongolia decreased by 5.01% MoM. The February data indicates that the mainstream stainless steel mills maintained low procurement prices for high-carbon ferrochrome, leading to an inverted cost structure for ferrochrome producers. Additionally, the shorter production cycle due to fewer days in February and the impact of the Chinese New Year holiday prompted some ferrochrome producers in south China to halt production for a break, resulting in a significant drop in high-carbon ferrochrome output.

Looking ahead to March 2025, the retail supply of high-carbon ferrochrome in the market is expected to remain tight, with retail prices continuing to rise. Meanwhile, as stainless steel mills are expected to significantly increase their production schedules in March, demand for ferrochrome is also anticipated to grow. The market widely expects stainless steel mills to raise their procurement prices for high-carbon ferrochrome, which has stimulated the enthusiasm of ferrochrome producers. Recently, the arrival of low-cost chrome ore futures is expected to alleviate cost pressure for ferrochrome producers. Considering the longer number of days in March and the planned resumption of production by some ferrochrome producers who had temporarily shut down for maintenance, ferrochrome production in March is expected to increase.