[SMM Daily Review] Ferrochrome Awaits Steel Tenders, Chrome Ore Adjusts Prices with Concessions

On May 21, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,000-8,100 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 8,100-8,200 yuan/mt (50% metal content), down slightly by 25 yuan. The quoted price of high-carbon ferrochrome from Kazakhstan was 8,900-9,000 yuan/mt (50% metal content), down 100 yuan from the previous day. Today, the ferrochrome market was generally stable with slight fall, with sluggish inquiries and limited downstream purchase demand. As the steel tender approaches, the market trading atmosphere remains mediocre, awaiting guidance from the steel tender prices. Ore prices remain stubbornly high, with cost pressure supporting ferrochrome prices, limiting the downside room for ferrochrome in the short term. Additionally, Sichuan has entered the rainy season, and with the advantage of lower electricity prices, there are production resumption plans in place. It is expected that ferrochrome production will further increase, leading to a surplus in supply. In the short term, the ferrochrome market is expected to operate steadily.

On the raw material side, the chrome ore market remained stable during the day, with a slight decrease in the prices of mainstream chrome ore. On May 21, 2025, the spot price of 40-42% South African powder at Tianjin Port was 61-62 yuan/mtu, with futures prices at 290-300 US dollars/mt. The quoted price of 48-50% Zimbabwean powder was 62-63 yuan/mtu, with futures prices at 350-360 US dollars/mt, unchanged from the previous trading day. The quoted price of 46-48% Turkish chrome concentrate was 69-71 yuan/mtu, down 1 yuan WoW. Affected by the persistent weakness in demand, the confidence of small and medium-sized traders has been undermined, leading them to lower their quotes and offer slight discounts to facilitate sales. The market is awaiting the release of steel tender prices, with limited fluctuations in chrome ore prices expected in the short term. The chrome ore market is expected to operate smoothly.