[SMM Daily Review] Chromium Market Weakens, Price Game Remains Stalemate

On June 4, 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), unchanged from the previous trading day. Although ferrochrome prices remained stable for the time being, producers' reluctance to budge on prices had waned. Downstream buyers were cautious in their purchases, and the trading atmosphere was sluggish. The production cut plan for stainless steel affected the procurement of ferrochrome. Coupled with the gradual resumption of production by ferrochrome producers, resulting in a significant increase in output, supply was gradually moving towards a surplus. The supply-demand imbalance was suppressing ferrochrome prices. Meanwhile, chrome ore prices continued to decline steadily, weakening the support for ferrochrome prices from reduced smelting costs. It is expected that ferrochrome prices may fall further in the coming period.

On the raw material front, chrome ore prices remained stagnant for the day. There was intense tug-of-war between buyers and sellers, and market sentiment was low. Prices were likely to continue to fall. On June 4, 2025, the spot cargo offer for 40-42% South African fines at Tianjin Port was 60-61 yuan/mtu; the offer for 48-50% Zimbabwean fines was 61-62 yuan/mtu; and the offer for 40-42% Turkish lump ore was 63-65 yuan/mtu, unchanged from the previous trading day. Ferrochrome producers were cautious in purchasing raw materials and had a strong desire to bargain down prices, resulting in frequent counter-offers for chrome ore. Small and medium-sized traders continuously sold goods at low prices to ensure stable cash flow, facing the dilemma of losses. Meanwhile, recent increases in port arrivals of chrome ore had increased the inventory pressure on traders. Coupled with difficulties in selling goods, it is expected that the chrome ore market will be generally stable with slight fall in the short term.