[SMM Daily Review] Chromium prices continue to fall, market sentiment is pessimistic and bearish

On June 5, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 7,800-7,900 yuan/mt (50% metal content). In Sichuan and north-west China, the ex-factory price of high-carbon ferrochrome was 7,900-8,000 yuan/mt (50% metal content), down 100 yuan/mt (50% metal content) MoM from the previous trading day. Low- and medium-carbon ferrochrome was quoted at 13,000-14,000 yuan/60 mt (50% metal content), down 200 yuan MoM. The ferrochrome market was in the doldrums during the day, with extremely limited downstream procurement and transactions, and a sluggish market sentiment. Entering the traditional consumption off-season, the impact of production cuts in downstream stainless steel was gradually being felt. Ferrochrome shipments were difficult, and producers' reluctance to budge on prices faded. To ensure stable capital flows, producers successively lowered their quotes, and the market continued to weaken. Ferrochrome supply was shifting towards a surplus, coupled with a downward trend in chrome ore prices, which reduced smelting costs and weakened support for ferrochrome prices, leaving room for further declines. Additionally, some ferrochrome producers held high-priced chrome ore inventory, facing significant cost pressure and potential profit losses. It is expected that the ferrochrome market will remain weak in the short term.

On the raw material front, chrome ore prices continued to fall during the day, with buyers maintaining strong pressure on prices. Sellers were clearly willing to unload and dispose of their inventory, resulting in low trading activity. On June 5, 2025, spot cargo quotes for 40-42% South African fines at Tianjin Port were 59-60 yuan/mtu; 48-50% Zimbabwean fines were quoted at 58-59 yuan/mtu; 40-42% Turkish lump ore spot cargo was quoted at 62-63 yuan/mtu; and 46-48% chrome concentrate fines spot cargo was quoted at 65-68 yuan/mtu, representing a decline of 1-3 yuan/mtu from the previous trading day. In the futures market, a new round of quotes for 40-42% South African fines from major overseas miners was $285/mt, down $10 from May 30. Zimbabwean 48-50% chrome concentrate futures were concentrated at $330-340/mt, down $15 MoM. The decline in futures offer prices further dampened traders' confidence, and the reluctance to budge on prices faded. Meanwhile, ferrochrome producers became more assertive, preferring to restock with more economical Zimbabwean chrome ore, but actual purchase demand remained limited, with continuous price pressure and counter-offers. Market sentiment was unstable, with an overall bearish outlook for the future. Small and medium-sized traders were unloading inventory at low prices to stabilize capital flows, and it is expected that chrome ore prices will continue to decline in the short term.