【SMM Weekly Review】Steel Tender Exceeds Expectations, Chromium Market Remains Stable

On April 25, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,200-8,300 yuan/mt (50% metal content), flat from the previous trading day. The ferrochrome market remained stable this week. At the beginning of the week, the steel tender price rose by 500 yuan, exceeding previous industry expectations, boosting overall market confidence. However, considering the recent downward trend in downstream stainless steel, the expected pre-May Day stockpiling demand did not materialize, and steel mills and traders showed limited purchasing enthusiasm, mostly adopting a cautious wait-and-see approach, resulting in limited actual transactions of ferrochrome. Although ferrochrome producers intended to follow the steel tender price increase and raise their ferrochrome quotations, they were constrained by actual demand, holding firm at around 8,300 yuan/mt (50% metal content). Meanwhile, some companies sold ferrochrome at low prices to recover funds, causing slight market price confusion. With frequent macro changes and chrome ore prices still fluctuating at highs, strong cost support makes it difficult to determine the direction of ferrochrome price changes. The ferrochrome market is expected to remain stable before the holiday. Subsequent attention should be paid to changes in the downstream stainless steel market. Raw material side, the chrome ore market remained stable this week. On April 25, 2025, the spot price of 40-42% South African fines at Tianjin Port was 62-63 yuan/mtu, and the new round of futures offer was $295/mt, flat MoM. Chrome ore prices have been stable at highs for two weeks, with sluggish purchase sentiment and sluggish transactions during the week. The steel tender price increase alleviated the cost pressure of ferrochrome producers, which is expected to boost ferrochrome supply and increase chrome ore demand. However, current ferrochrome producers mainly purchase chrome ore based on rigid demand, buying the dip, primarily because most producers have already completed raw material stocking and have limited acceptance of high-priced chrome ore. The mid-week transaction of 40-42% South African fines at 62.5 yuan supported chrome ore market confidence, but considering ferrochrome cost pressure and purchase willingness, the futures offer remained flat at $295/mt. Chrome ore prices are expected to remain stable at highs in the short term.