[SMM Daily Review] Ferrochrome Market Remains Stable, Chrome Ore Prices Fluctuate in Stalemate

On May 19, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,000-8,100 yuan/mt (50% metal content), pulling back by 25 yuan/mt (50% metal content) from the previous trading day. In terms of imported ferrochrome, the price of high-carbon ferrochrome from Kazakhstan fell by 100 yuan, with quotes remaining at 9,000-9,100 yuan/mt (50% metal content). The ferrochrome market operated smoothly during the day, with retail prices slightly declining. Inquiry sentiment rebounded compared to the previous week, but actual trading volumes remained limited. The price rally and active trading of downstream stainless steel, influenced by favourable macro front news, were largely exhausted. The market returned to fundamentals, with staged procurement needs being met, and trading volumes and prices began to pull back. This was transmitted to the ferrochrome sector, where purchasing demand continued its previous mediocre trend. Although inquiries increased, they were mostly exploratory, with limited actual transactions. Regarding the smelting cost of ferrochrome, the first round of price reductions for secondary metallurgical coke was completed last weekend, leading to a certain decrease in the production cost of ferrochrome. However, chrome ore prices continued to fluctuate at highs, strongly supporting ferrochrome prices. As a result, producers had limited willingness to cut prices. Meanwhile, as steel tenders were about to be finalized, the market adopted a wait-and-see attitude, with most expecting stable steel tender prices and anticipating a flat market. It is expected that ferrochrome prices will operate smoothly in the short term.

In terms of raw materials, chrome ore prices remained stable during the day, with limited enthusiasm for inquiries. On May 19, 2025, spot cargo quotes for 40-42% South African powder at Tianjin Port were 61-62 yuan/mtu, with futures prices at $290-300/mt. Quotes for 48-50% Zimbabwean powder were 62-63 yuan/mtu, with futures prices at $350-360/mt, unchanged from the previous trading day. Weak downstream demand for ferrochrome affected chrome ore purchasing and trading volumes. Currently, most ferrochrome producers are mainly consuming previous inventories, with limited stocking demand and general purchasing sentiment. Some traders have chosen to offer slight discounts to facilitate sales. Due to the concentrated supply of South African powder, prices remained stable. However, Zimbabwean and mainstream chrome ore faced issues with dispersed open interest, leading to more chaotic quotes. It is expected that the chrome ore market will operate smoothly in the short term, awaiting the finalization of steel tender prices.