[SMM Weekly Review] Ferrochrome Market Generally Stable with Slight Fall, Chrome Ore Prices Remain High

On April 18, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia remained flat at 8,300-8,400 yuan/mt (50% metal content) compared to the previous trading day. This week, ferrochrome prices pulled back slightly, down 100 yuan/mt (50% metal content) WoW. Fluctuations in tariff policies have impacted the macro situation. Although downstream stainless steel prices have stopped falling and begun to rebound, end-user purchase willingness remains sluggish. Stainless steel prices remained stable at relatively low levels during the week, affecting ferrochrome purchase willingness. Meanwhile, ferrochrome sales in the retail market were active in the previous two weeks, and supply is nearing saturation, leading to a slight pullback in ferrochrome prices. As May approaches, the market is awaiting the release of a new round of steel tenders. The downstream market is not very clear, and the ferrochrome market holds a conservative expectation for steel tenders. While there is a bullish sentiment, the estimated increase is limited, and most participants maintain a cautious wait-and-see attitude. Additionally, as downstream stainless steel has not announced actual production cut plans, planned production has significantly increased, boosting demand and raising the production enthusiasm of ferrochrome producers. Coupled with the previous purchase of chrome ore raw materials for inventory and the upcoming arrival of low-priced chrome ore futures purchased around the Chinese New Year, cost pressure on ferrochrome production has been alleviated to some extent. During the week, multiple ferrochrome producers resumed operations, and ferrochrome production increased. The previously tight supply situation may ease. In the short term, the ferrochrome market is expected to operate generally stable with a slight fall. Raw material side, chrome ore prices remained stable at high levels this week. The spot price of 40-42% South African powder at Tianjin Port stayed at 62-63 yuan/mtu, while overseas mine futures quotations remained flat. The price of 40-42% South African chrome concentrate was $295-305/mt, providing stable support to the chrome ore futures market. Chrome ore purchases during the week were mediocre compared to the previous two weeks, mainly driven by rigid demand. The primary reason is that previous chrome ore purchases were active, and raw material inventory is relatively sufficient. Additionally, buyers’ acceptance of high-priced chrome ore is generally low. With the upcoming steel tenders next month, the market is mostly in a wait-and-see mode, and chrome ore transactions are sluggish. The slight pullback in ferrochrome prices has affected the chrome ore market, and macro fluctuations have fueled concerns. However, flat futures quotations and ongoing spot transactions continue to support chrome ore spot prices. In the short term, the chrome ore market is expected to remain stable at high levels.