[SMM Daily Review] Ferrochrome Producers Resume Production Actively, Chrome Ore Transactions Remain Mediocre Before the Holiday

On April 29, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,200-8,300 yuan/mt (50% metal content), unchanged WoW. The ferrochrome market operated smoothly today, with many producers resuming production recently. The earlier increase in retail ferrochrome prices helped restore producer profits, and with most raw material stocking completed, ferrochrome producers' production enthusiasm was raised, leading to a significant increase in ferrochrome production. Additionally, downstream stainless steel prices generally declined, causing steel mills to suffer losses and end-user procurement to be weak, affecting the sentiment of ferrochrome market participants. To recoup funds, some producers and traders chose to sell their stocks at low prices, leading to a chaotic ferrochrome price situation. However, actual transactions were very limited. The market was strongly anticipating the holiday, with mediocre purchase inquiries. It is expected that the ferrochrome market will operate steadily before the holiday.

On the raw material side, chrome ore operated smoothly before the holiday. On April 28, 2025, the spot price of 40-42% South African powder at Tianjin Port remained at 62-63 yuan/mtu, and the futures price was stable at 290-300 US dollars/mt. Affected by the production resumptions of many ferrochrome producers, there was certain support for just-in-time procurement of chrome ore. However, buyers' acceptance of high-priced chrome ore remained average, with mediocre transactions. Considering the poor performance of the downstream stainless steel market, some traders had certain concerns about the development of the chrome ore market in May and June. However, as the Labour Day holiday approached, the sentiment of both parties was relatively calm, with mediocre purchase and sales activities. It is estimated that chrome ore prices will operate smoothly in the short term.