[SMM Daily Review] Steel bidding prices remain unchanged, market operates steadily

On May 22, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,000-8,100 yuan/mt (50% metal content). In Sichuan and north-west China, the ex-factory price of high-carbon ferrochrome was 8,100-8,200 yuan/mt (50% metal content), unchanged from the previous trading day. Today, the ferrochrome market operated steadily, with steel mills' tender prices remaining flat. During the day, Tsingshan announced the long-term contract purchase price for high-carbon ferrochrome in June 2025 at 8,095 yuan/mt (50% metal content, cash, tax-inclusive, delivery-to-factory price), unchanged MoM, in line with previous market expectations. Considering the significant increase in ferrochrome production schedules, the supply-demand balance shifted from tight supply to a slight surplus, leading to a gradual correction in retail ferrochrome prices. Coupled with the sluggish performance of the downstream stainless steel market and moderate purchase demand, it is estimated that there is still a risk of further price declines for ferrochrome. However, the current ore prices are relatively firm, and the cost pressure provides significant support for ferrochrome prices, limiting the extent of any decline. It is expected that the ferrochrome market will remain stable in the short term.

On the raw material front, inquiry activities increased during the day, and the trading atmosphere improved compared to the previous period. On May 22, 2025, the spot offer for 40-42% South African powder at Tianjin Port was 61-62 yuan/mtu, with futures prices at 290-300 US dollars/mt. The offer for 48-50% Zimbabwean powder was 62-63 yuan/mtu, with futures prices at 350-360 US dollars/mt. The offer for 46-48% Turkish chrome concentrate was 69-71 yuan/mtu, with futures prices at 380-390 US dollars/mt, unchanged from the previous trading day. Recently, ferrochrome producers have mainly been consuming their own inventories. Considering the further increase in ferrochrome production and the flat landing of steel mills' tenders in June, the purchase demand for chrome ore is gradually being released, and inquiry enthusiasm has improved WoW. Zimbabwean chrome ore is more economical than South African powder, making it relatively easier to sell. South African powder has a concentrated supply and slightly tight availability, with traders showing strong willingness to refuse to budge on prices, limiting the downside room for prices. In addition, the chrome ore market is currently awaiting a new round of overseas market futures quotes for chrome ore. It is expected that the chrome ore market will operate steadily in the short term.