[SMM Daily Review] Ferrochrome Prices Slightly Lowered, Chrome Ore Market in the Doldrums

On May 13, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,000-8,150 yuan/mt (50% metal content), down 50 yuan/mt (50% metal content) from the previous trading day. In Sichuan and north-west China, the price of high-carbon ferrochrome remained stable at 8,200-8,300 yuan/mt (50% metal content). The ferrochrome market was in the doldrums during the day, with retail prices dropping slightly again. Although inquiry enthusiasm increased, actual transactions remained limited. Recently, a high-carbon ferrochrome enterprise in Guangxi resumed production of a 40,500 KVA submerged arc furnace, which is expected to increase the monthly production of high-carbon ferrochrome by 7,000 mt. Considering the numerous production resumptions by ferrochrome producers in late April, there will be a significant increase in ferrochrome production in May, and the supply-demand balance of ferrochrome will shift to a state of slight surplus in ferrochrome supply, exerting certain downward pressure on ferrochrome prices. The favorable Sino-US tariff policies are positive for the future outlook of ferrochrome, but sentiment and demand still require some time to digest and respond. Therefore, ferrochrome purchase transactions remained limited during the day. In addition, as it approached mid-to-late May, the ferrochrome sector was mostly waiting for the implementation of next month's steel procurement prices. The mainstream view in the market was still for stable prices, and it was expected that the ferrochrome market would remain weak in the short term.

On the raw material side, chrome ore prices dropped slightly during the day. On May 13, 2025, the spot offer for 40-42% South African powder at Tianjin Port was 61-62 yuan/mtu, down 0.5 yuan/mtu from the previous trading day. The offer for 48-50% Zimbabwe chrome concentrate powder was 62-63 yuan/mtu, also down slightly by 0.5 yuan/mtu. Ferrochrome producers maintained a wait-and-see attitude on this day, with mediocre sentiment towards chrome ore purchases. Most transactions were spot orders, with frequent price negotiations and counteroffers. The prices of mainstream chrome ores remained stable, with active offers, but due to the overall market atmosphere, sales were difficult, and actual transactions were sluggish. Considering the high planned production of ferrochrome, there will be a certain demand for chrome ore restocking in the future. It is expected that the chrome ore market will be generally stable with slight fall in the short term.