[SMM Daily Review] The atmosphere for ferrochrome purchase is mediocre, while chrome ore prices are generally stable with slight fall

On May 29, 2025, the ex-factory prices of high-carbon ferrochrome in Inner Mongolia were 7,900-8,000 yuan/mt (50% metal content). In Sichuan and north-west China, the ex-factory prices of high-carbon ferrochrome were 8,000-8,100 yuan/mt (50% metal content), unchanged from the previous day on a MoM basis. In terms of imported ferrochrome, the prices of high-carbon ferrochrome from Kazakhstan in India decreased by 50 yuan from the previous day, remaining at 8,800-9,000 yuan/mt (50% metal content). Ferrochrome prices remained stable during the day, with downstream purchases remaining sluggish and actual transactions being sluggish. Affected by the news of production cuts in downstream stainless steel, purchases of ferrochrome remained cautious, with general inquiry sentiment. In addition, ferrochrome production increased significantly. Under the pressure of supply surplus, ferrochrome producers were mostly bearish on the market outlook, with relatively pessimistic expectations, and there was further downside room for ferrochrome prices. However, supported by the cost pressure from high chrome ore prices, the ferrochrome market was expected to be generally stable with slight fall in the short term.

On the raw material side, the chrome ore market was generally stable with slight fall today. Traders faced difficulties in selling, and the market was dominated by wait-and-see sentiment. On May 29, 2025, the spot quotes for 40-42% South African powder at Tianjin Port were 60-61 yuan/mtu; the quotes for 48-50% Zimbabwean powder were 61-62 yuan/mtu; and the spot quotes for 40-42% Turkish lump ore were 63-65 yuan/mtu, unchanged from the previous day on a MoM basis. With the continuous decline in ferrochrome prices and weak downstream demand, the upstream chrome ore market was affected, with ferrochrome producers being relatively cautious in purchasing chrome ore. There were inquiry operations during the day, but actual transactions were limited. On the one hand, ferrochrome producers had low acceptance of current chrome ore prices, with a clear desire to bargain down prices, and there were many cases of counter-offers. On the other hand, chrome ore traders had a relatively negative mindset and were eager to sell off goods to recoup funds amid bearish expectations for the market outlook. The chrome ore market was expected to be generally stable with slight fall in the short term.