[SMM Daily Review] Chromium market operates steadily, prices may continue to decline

On June 9, 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. Today, the ferrochrome market is operating steadily, with downstream procurement remaining cautious. The weakening support from falling costs for prices suggests a further risk of decline. Recently, environmental protection checks in north China have affected the production of some ferrochrome producers, potentially suppressing the increase in ferrochrome supply. Additionally, South Africa's Merafe announced the suspension of operations at its Lion ferrochrome smelter for over three months, following the indefinite closure of Boshoek and the temporary suspension of Wonderkop. The closure of Lion represents the complete halt of Glencore-Merafe's ferrochrome smelting operations in South Africa. This implies a rapid decrease in South Africa's ferrochrome exports and a corresponding decline in China's ferrochrome imports, alleviating the speed of ferrochrome supply surplus. It is expected that the ferrochrome market will remain stable in the short term.

On the raw material side, chrome ore prices are in the doldrums today. South African raw ore prices have dropped slightly, while Zimbabwean chrome concentrate fines remain weak, with overall market activity being poor. On June 9, 2025, spot quotes for 40-42% South African fines at Tianjin Port were 58-59 yuan/mtu; 48-50% Zimbabwean fines were quoted at 58-59 yuan/mtu; 40-42% Turkish lump ore spot quotes were 62-63 yuan/mtu; and 46-48% chrome concentrate fines were quoted at 65-67 yuan/mtu, unchanged from the previous trading day. Spot quotes for 40-42% South African raw ore were 50-51 yuan/mtu, down 1.5 yuan/mtu MoM. In the futures market, 40-42% South African fines were quoted at $285-290/mt, down $5 MoM. Furthermore, a major overseas mine took the lead in lowering spot quotes, dampening traders' confidence. Domestic spot prices for South African chrome ore have shown a weakening trend. Buyer inquiries are low, with most transactions involving price-driven counteroffers. Meanwhile, chrome ore inventory at ports continues to grow, reaching 2.96 million mt as of June 6, up 3.5% MoM. Chrome ore traders are facing increased inventory pressure, and it is expected that the chrome ore market will remain weak in the short term.