[SMM Daily Review] The market remains stable after the holiday, with ferrochrome expected to maintain growth

On May 6, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,100-8,200 yuan/mt (50% metal content), while in Sichuan, north-west China, and other regions, it was 8,200-8,300 yuan/mt (50% metal content), unchanged from the previous trading day. Ferrochrome prices remained stable during the day. On the first day after the holiday, market sentiment in the ferrochrome market was released slowly, and transactions remained limited. According to SMM data, ferrochrome production in April increased by 20.3% MoM. The previous tight supply situation gradually eased, and the supply gap was gradually repaired. Meanwhile, ferrochrome producers actively resumed production at the end of April, and ferrochrome production is expected to increase further in May. After the holiday, the market continued to maintain a wait-and-see attitude. Although inquiry enthusiasm increased somewhat, actual transactions remained limited. Some producers chose to sell at lower prices to recoup funds, but the high-level operation of chrome ore supported ferrochrome prices. It is expected that the ferrochrome market will operate steadily in the short term.

On the raw material side, the chrome ore market operated steadily during the day. On May 6, 2025, the spot price of 40-42% South African powder at Tianjin Port was 62-63 yuan/mtu, and the futures price was 290-300 US dollars/mt, in a stalemate at high prices. After the holiday, enthusiasm for chrome ore purchases rebounded somewhat, but it was still mainly for rigid demand spot orders, with buying the dip. The high planned production of ferrochrome and downstream stainless steel supported chrome ore demand. It is expected that chrome ore prices will remain stable in the short term.

Regarding metallic chromium, prices rose again after the holiday, with the market price of 99A metallic chromium increasing to 74,000-76,000 yuan/mt. At the current stage, the price of raw material chromium oxide green is approximately 33,000 yuan/mt. Coupled with tight supply, this cost supports the price of metallic chromium.