[SMM Daily Review] Chromium prices continue to weaken, market sentiment gradually declines

On May 28, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 7,900-8,000 yuan/mt (50% metal content). In Sichuan and north-west China, the ex-factory price of high-carbon ferrochrome was 8,000-8,100 yuan/mt (50% metal content), down 50 yuan/mt (50% metal content) MoM from the previous day. For imported ferrochrome, the price of Indian high-carbon ferrochrome fell by 100 yuan MoM, remaining in the range of 8,300-8,400 yuan/mt (50% metal content). Ferrochrome prices fell further during the day amid supply surplus and weak demand, with market sentiment turning pessimistic. Recently, there have been multiple reports of production cuts in downstream stainless steel, which is expected to reduce the demand for ferrochrome purchases. Meanwhile, ferrochrome producers have continued to resume production, leading to a significant increase in ferrochrome supply and a shift to surplus, driving ferrochrome prices to continue declining. However, despite the decline in spot chrome ore prices, they still remained at relatively high levels, with cost pressure limiting the downside room for ferrochrome prices. It is expected that the ferrochrome market will remain in the doldrums in the short term, with continuous attention to changes in the production schedules of downstream stainless steel.

On the raw material side, the chrome ore market was in the doldrums today, with spot prices falling further and actual transactions remaining limited. On May 28, 2025, the spot offer for 40-42% South African powder at Tianjin Port was 60-61 yuan/mtu; the offer for 48-50% Zimbabwean powder was 61-62 yuan/mtu; and the offer for 40-42% Turkish lump ore was 63-65 yuan/mtu, down 1 yuan/mtu MoM from the previous day. Affected by the continued cautious purchasing behavior of ferrochrome producers, chrome ore traders faced increased inventory pressure and continued to lower their offers, making slight concessions to facilitate sales. However, ferrochrome producers' acceptance of ore prices was average, and with most restocking completed by mid-May, actual transactions remained limited. In addition, the price of Zimbabwean chrome concentrate fines fell significantly, with good economic efficiency becoming a key focus in the chrome ore market recently. Considering that chrome ore futures prices remained firm, providing some support to the chrome ore market, it is expected that the chrome ore market will be generally stable with slight fall in the short term.