[SMM Daily Review] Ferrochrome Prices Slightly Disordered, Chrome Ore Futures Closed Flat

On April 28, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,100-8,300 yuan/mt (50% metal content), down 50 yuan/mt (50% metal content) MoM. The ferrochrome market operated smoothly today. Steel tenders' 500 yuan increase boosted market confidence, expanding the profit margins of ferrochrome producers and increasing their production enthusiasm. Coupled with the approaching rainy season in south China, there have been frequent production resumptions recently. In Inner Mongolia, along with three enterprises in Sichuan resuming production, it is expected to impact the monthly production of high-carbon ferrochrome by approximately 15,000 mt. However, the downstream stainless steel market is declining, with prices falling, affecting the sentiment for ferrochrome purchases, thus limiting transactions. Meanwhile, some producers and traders are bearish on the market outlook and choose to sell at low prices, causing some confusion in the ferrochrome market prices. In addition, chrome ore prices have fluctuated at highs for a month, providing significant cost support. The price change space for ferrochrome is relatively small in the short term, and it is expected to operate smoothly before the holiday.

On the raw material side, the chrome ore market operated steadily today, with moderate inquiry enthusiasm. On April 28, 2025, the spot price of 40-42% South African powder at Tianjin Port remained at 62-63 yuan/mtu, and 45,000 mt of futures were traded flat at $295/mt. Due to the arrival of low-priced chrome ore futures before and after the Chinese New Year, combined with previous spot purchases, most ferrochrome producers have completed their pre-holiday raw material stocking. Purchases are mostly for just-in-time spot orders, and it is expected that a new wave of chrome ore purchases will occur after the Labour Day holiday. Although inquiry and purchasing sentiment are relatively mediocre, chrome ore prices remain firm, supported by actual transactions in both futures and spot markets. It is expected that chrome ore prices will remain largely stable in the short term.