[SMM Weekly Review] Chromium market continues to decline, actual transaction volume remains limited

On June 6, 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), unchanged MoM. This week, the ferrochrome market continued to decline, with retail quotations falling by 100 yuan/mt (50% metal content). Downstream purchases remained cautious, and actual transactions were limited. The contradiction between supply surplus and weak demand prompted downstream stainless steel producers to cut production to alleviate losses, which was reflected in the ferrochrome market as poor purchase sentiment and sluggish demand. Meanwhile, planned production of ferrochrome increased further, and supply gradually turned into a surplus. Under the condition of supply-demand imbalance, ferrochrome producers' reluctance to budge on prices faded, and they successively lowered their quotations. In addition, chrome ore prices continued to fall. The advantage of lower electricity prices during the rainy season, combined with two rounds of coke price reductions, led to a decrease in the immediate smelting cost of ferrochrome, weakening the support for ferrochrome prices. There was still further downside room for ferrochrome prices. Producers were pessimistic about the outlook and eager to sell off their inventory, leading to an increase in low-priced supplies on the market. It is expected that ferrochrome prices will remain in the doldrums in the short term.

In terms of raw materials, the tug-of-war between sellers and buyers ended, with South African fines unable to refuse to budge on prices, and both futures and spot prices falling. Zimbabwean fines offered significant discounts, with prices falling sharply, and overall market activity was poor. On June 6, 2025, the spot quotation for 40-42% South African fines at Tianjin Port was 58-59 yuan/mtu, down 1 yuan/mtu MoM. The quotation for 48-50% Zimbabwean fines was 58-59 yuan/mtu. The spot quotation for 40-42% Turkish lump ore was 62-63 yuan/mtu. The spot quotation for 46-48% chrome concentrate fines was 65-67 yuan/mtu, unchanged from the previous trading day. In the futures market, the quotation for 40-42% South African fines was $285-295/mt, down $5 MoM. The decline in futures offer prices further dampened traders' confidence, and they no longer refused to budge on prices. Meanwhile, ferrochrome producers became more aggressive, preferring to restock with more cost-effective Zimbabwean chrome ore. However, their actual purchase demand was limited, and they continued to drive down prices and make counter-offers. Market sentiment was unstable, with an overall bearish outlook for the future. Small and medium-sized traders sold off their inventory at low prices to stabilize their capital, and it is expected that chrome ore prices will continue to decline in the short term.