[SMM Weekly Review] Ferrochrome Production Increased Significantly, Market Operated Steadily Before the Holiday

On April 30, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,100-8,200 yuan/mt (50% metal content), down 50 yuan/mt (50% metal content) from the previous trading day. Prices in Sichuan, north-west China, and other regions also pulled back by 100 yuan/mt (50% metal content). The downstream ferrochrome market was generally stable with slight fall this week. Stainless steel planned production remained high, boosting ferrochrome demand and increasing producers' enthusiasm for production. Meanwhile, as most producers had completed raw material stocking, production resumptions were frequent. High-carbon ferrochrome production in April surged significantly, up 20.3% MoM, narrowing the previous supply gap. Coupled with the ongoing impact of tariff policies on the macroeconomic situation, the downstream stainless steel market declined, leading to cautious procurement of ferrochrome. Additionally, influenced by the Labour Day holiday, ferrochrome inquiries and transactions were limited during the week. Furthermore, the retail price of ferrochrome earlier fell slightly by 200 yuan/mt (50% metal content), with quotes in Inner Mongolia concentrated at 8,100-8,200 yuan/mt (50% metal content). However, current chrome ore prices are still fluctuating at highs, with cost pressure providing some support to ferrochrome prices. It is expected that the ferrochrome market will operate steadily in the short term. Subsequent attention should still be paid to stainless steel production schedules and market changes.

On the raw material side, the chrome ore market operated steadily this week. On April 28, 2025, the spot price of 40-42% South African powder at Tianjin Port remained at 62-63 yuan/mtu, with futures prices stable at 290-300 US dollars/mt. The spot quote for 48-50% Zimbabwe chrome concentrate powder was 63-64 yuan/mtu, showing a slight pullback of 0.5 yuan/mtu WoW. Purchase sentiment for chrome ore was generally weak during the week, with few inquiries and transactions. The main reason was the arrival of low-priced chrome ore earlier, coupled with the completion of spot purchase stocking. Ferrochrome producers were mostly purchasing for immediate needs via spot orders. Meanwhile, as the Labour Day holiday approached, market sentiment was strongly influenced by the holiday anticipation, coupled with concerns about the macroeconomic situation, resulting in low purchase willingness among traders. However, the high planned production of both downstream stainless steel and ferrochrome supports demand for chrome ore. It is expected that chrome ore prices will remain stagnant in the short term.