[SMM Daily Review] Ferrochrome prices remain stable, chrome ore market in the doldrums

On June 10, 2025, the ex-factory prices of high-carbon ferrochrome in Inner Mongolia were 7,800-7,900 yuan/mt (50% metal content). In Sichuan and north-west China, the ex-factory prices of high-carbon ferrochrome were 7,900-8,000 yuan/mt (50% metal content), unchanged MoM. Today, the ferrochrome market operated steadily. Downstream purchase willingness was average, with limited actual transactions and a relatively pessimistic market sentiment. Tsingshan cancelled its price-limiting policy, and the prices of downstream stainless steel dropped slightly, with a short-term downward trend unlikely to change. This was transmitted to the ferrochrome sector, reducing purchase demand and leading to a pronounced mindset of driving down prices. The ferrochrome market held a relatively pessimistic outlook for steel tenders next month, with a bearish bias. The decline in chrome ore prices pushed down the production costs of ferrochrome, weakening the support for ferrochrome prices. It is expected that the ferrochrome market will operate generally stable with slight fall in the short term.

On the raw material side, chrome ore prices remained stable during the day. Buyers exercised caution in procurement, and overall market activity was low. On June 10, 2025, the spot quotes for 40-42% South African powder at Tianjin Port were 58-59 yuan/mtu; the quotes for 48-50% Zimbabwean powder were 58-59 yuan/mtu; the spot quotes for 40-42% Turkish lump ore were 62-63 yuan/mtu; the spot quotes for 46-48% chrome concentrate powder were 65-67 yuan/mtu; and the futures quotes for 40-42% South African powder were $285-290/mt, unchanged from the previous trading day. The sluggish sales of ferrochrome affected the procurement of chrome ore. As the current dominant party, the ferrochrome sector continued to exert pressure on prices, leading to successive declines in chrome ore prices. Zimbabwean chrome concentrate powder took the lead in reducing prices, with small and medium-sized traders selling off their stocks at low prices to stabilize their capital. The futures prices of South African powder dropped slightly, with the market currently in a stalemate and holding a pessimistic outlook. In the short term, the chrome ore market is expected to operate generally stable with slight fall.