[SMM Daily Review] Ferrochrome Prices Weaken, Chrome Ore Market Remains Stable

On May 27, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 7,900-8,100 yuan/mt (50% metal content). In Sichuan and north-west China, the ex-factory price of high-carbon ferrochrome was 8,000-8,200 yuan/mt (50% metal content), down 50 yuan/mt (50% metal content) from the previous day. Ferrochrome prices weakened during the day amid poor downstream demand, with shipments remaining difficult. Since the flat settlement of steel procurement prices, the ferrochrome sector has been bearish on the market outlook. Coupled with the cautious purchasing sentiment in the downstream stainless steel sector, ferrochrome producers and traders have continuously lowered their quotes to recoup funds. Meanwhile, ferrochrome producers have resumed production frequently in recent times, leading to a significant increase in ferrochrome supply in May. The surplus issue has gradually been reflected in the actual market, so there is still a risk of further price declines for ferrochrome. However, the current firm chrome ore prices and cost pressure support ferrochrome prices, limiting the downside room. It is expected that the ferrochrome market will remain in the doldrums in the short term.

On the raw material side, the chrome ore market remained stable today, with a sluggish trading atmosphere and a downward price trend. On May 27, 2025, the spot offer for 40-42% South African powder at Tianjin Port was 61-62 yuan/mtu, with futures prices at $290-300/mt. The offer for 48-50% Zimbabwean powder was 62-63 yuan/mtu, with futures prices at $350-360/mt, unchanged from the previous trading day. The long-term sluggish purchasing of ferrochrome by the downstream sector has affected the inquiry sentiment for chrome ore, and the prolonged sluggish trading has dampened traders' confidence, leading to a gradual decline in spot offers for chrome ore. Zimbabwean chrome ore is more economical than South African powder, resulting in relatively more shipments and order signings. The chrome ore market is generally bearish on the market outlook with insufficient information, and it is expected to remain generally stable with slight fall in the short term.