[SMM Daily Review] Favorable tariff policies boost market confidence, ferrochrome prices remain stable

On May 14, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,000-8,150 yuan/mt (50% metal content). In Sichuan and north-west China, the ex-factory price of high-carbon ferrochrome was 8,200-8,300 yuan/mt (50% metal content), unchanged from the previous trading day. The ferrochrome market operated smoothly during the day. Favorable tariff policies boosted downstream stainless steel prices, enhancing market confidence in the ferrochrome sector to a certain extent. However, it may still take some time for ferrochrome prices to respond to these changes. Ferrochrome producers maintained stable quotations, with occasional low-price sales by traders. However, due to the cautious procurement approach of downstream stainless steel producers, actual transactions remained limited. Additionally, the downside room for chrome ore prices is currently limited, with prices remaining high and fluctuating, exerting certain pressure on the production costs of ferrochrome and supporting its prices. It is expected that the ferrochrome market will remain stable in the short term.

During the day, chrome ore prices remained stable, awaiting the release of subsequent purchase demand. On May 14, 2025, the spot cargo quotation for 40-42% South African powder at Tianjin Port was 61-62 yuan/mtu, while the quotation for 48-50% Zimbabwe chrome concentrate powder was 62-63 yuan/mtu, unchanged MoM. The trading atmosphere for chrome ore remained sluggish after the holiday, with market expectations suggesting a possible decline in chrome ore prices. However, influenced by favorable tariff policies, the previous pessimistic sentiment in the market has somewhat diminished. At this stage, the market is mostly waiting and observing the quotation prices for the new round of overseas large-scale mines and the steel procurement prices for next month. It is expected that the chrome ore market will operate smoothly in the short term.