[SMM Daily Review] Ferrochrome market is generally stable with slight fall, chrome ore market remains stable

On May 8, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,100-8,200 yuan/mt (50% metal content), while the trade price in east China was 8,200-8,300 yuan/mt (50% metal content), unchanged from the previous trading day. The ferrochrome market was generally stable with slight fall today, with a sluggish market sentiment and limited trading volume. Downstream demand for stainless steel continued to weaken, with mediocre inquiries and purchases of ferrochrome, and most market participants remained cautious and on the sidelines. The macroeconomic situation was volatile. Although news of China-US negotiations had a certain impact in driving up prices, the lack of actual policy implementation failed to sustain market confidence. Some factories further lowered their quotes to ensure stable capital flows, increasing the room for ferrochrome price negotiations, but trading volume remained poor. Meanwhile, the planned production of ferrochrome continued to rise, gradually closing the supply gap. Given weak demand, the ferrochrome market was relatively pessimistic about the outlook. It is expected that the ferrochrome market will remain generally stable with slight fall in the short term.

In terms of raw materials, the chrome ore market operated smoothly during the day. On May 8, 2025, the spot offer for 40-42% South African powder at Tianjin Port was 62-63 yuan/mtu, with futures prices at 290-300 US dollars/mt. Currently, chrome ore prices are fluctuating at highs. Although actual transactions of 300 US dollars/mt futures supported market confidence in the chrome ore market, ferrochrome producers had low acceptance of high-priced raw materials. Moreover, ferrochrome producers had relatively sufficient raw material stockpiles in the early stage, leading to recent purchases mainly for just-in-time spot orders, with sluggish inquiries and transactions. Considering the further increase in ferrochrome planned production and the positive demand outlook driving chrome ore prices to remain high and stable, it is expected that the chrome ore market will operate smoothly in the short term.