[SMM Daily Review] Ferrochrome prices are generally stable with slight fall, while the chrome ore market remains steady.

On May 15, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,000-8,150 yuan/mt (50% metal content), unchanged from the previous trading day. In Sichuan and north-west China, the ex-factory price of high-carbon ferrochrome was 8,100-8,250 yuan/mt (50% metal content), down 75 yuan/mt (50% metal content) from the previous trading day. The price of low- and micro-carbon ferrochrome fell by 200 yuan MoM, with a price range of 13,300-13,900 yuan/60 mt (50% metal content). For imported ferrochrome, Kazakhstan's ferrochrome was quoted at 9,100-9,200 yuan/mt (50% metal content), down 100 yuan, while India's ferrochrome was quoted at 8,400-8,500 yuan/mt (50% metal content), down 50 yuan. On the day, ferrochrome prices were in the doldrums. Ferrochrome producers in northern China maintained stable quotes, while those in southern China, constrained by difficulties in selling their cargo, chose to lower their quotes, though actual transactions remained limited. As the month progressed, the market was mostly waiting for the next month's steel tenders, with a strong wait-and-see sentiment. Additionally, the planned production of stainless steel in May remained high, coupled with a price rebound amid recent macroeconomic changes, the market was on an upward trend. Therefore, it was expected that the steel tender prices for ferrochrome would remain stable or see a slight increase. Currently, chrome ore prices were stagnant, with the production cost of ferrochrome remaining within the range of 8,120-8,400 yuan/mt (50% metal content), providing some support for ferrochrome prices. It was expected that the ferrochrome market would be generally stable with slight fall in the short term.

On the raw material front, chrome ore prices remained stable on the day, with futures prices closing flat. On May 15, 2025, the spot price of 40-42% South African powder at Tianjin Port was 61-62 yuan/mtu, while the price of 48-50% Zimbabwean powder was 62-63 yuan/mtu, unchanged from the previous trading day. Constrained by difficulties in selling ferrochrome and with relatively sufficient raw material stocking, the atmosphere for chrome ore inquiries and purchases remained mediocre, with most restocking done through spot orders. Today, a new round of futures quotes for large overseas mines was 295 US dollars/mt, unchanged from May 9. The flat futures prices of chrome ore supported spot prices, while the concentrated supply of chrome ore gave traders a sentiment to stand firm on quotes. However, according to SMM statistics, chrome ore port arrivals in May rebounded compared to March-April, affecting chrome ore inventory and supply. The weak outlook prompted some traders to actively offer quotes, making slight concessions to sell their cargo, thereby increasing the room for chrome ore price negotiations. It was expected that chrome ore prices would remain high and stagnant in the short term.