[SMM Daily Review] Ferrochrome Market Operates Steadily, Imported Ferrochrome Volume Expected to Decrease

On May 7, 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. The ferrochrome market remained stable during the day, with a sluggish trading atmosphere. The downstream stainless steel sector continued to operate in the doldrums, affecting the procurement demand for ferrochrome. To recoup funds, producers gradually lowered their quotes, with transaction prices for high-carbon ferrochrome in Inner Mongolia concentrated in the 8,100-8,200 yuan/mt (50% metal content) range. Additionally, there was a significant increase in ferrochrome production resumptions, repairing the supply gap and weakening the previous sentiment to stand firm on quotes, leading to a relatively pessimistic outlook on market development. However, the announcement of the shutdown of two ferrochrome smelters by Merafe Resources in South Africa is expected to impact subsequent import volumes of ferrochrome, alleviating the supply surplus of ferrochrome to a certain extent. It is anticipated that the ferrochrome market will operate steadily in the short term.

In terms of raw materials, the chrome ore market operated steadily during the day. On May 7, 2025, the spot price of 40-42% South African powder at Tianjin Port remained at 62-63 yuan/mtu, while 30,000 mt of futures were traded at $300/mt, potentially further boosting confidence in the chrome ore market. The supply of South African chrome ore is concentrated, with mines showing strong sentiment to stand firm on quotes and bullish expectations for the future. Although ferrochrome producers are currently focusing on just-in-time procurement of spot orders, the high planned production of ferrochrome supports the demand for chrome ore. It is expected that the chrome ore market will operate generally stable with a slight rise in the short term.