[SMM Daily Review] Poor Shipments, Pessimistic Expectations, Chromium Market Decline Hard to Halt

On June 11, 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 were 7,900-8,000 yuan/mt (50% metal content), unchanged MoM. Ferrochrome prices remained stable during the day, with market participants mostly waiting for guidance from the new round of steel tenders. Downstream buyers were cautious in purchasing and taking deliveries, anticipating a bearish market outlook. Although environmental protection checks in northern China had a certain impact on ferrochrome production, overall production still showed an upward trend. Ferrochrome producers lacked confidence, and their willingness to sell continued to increase. However, the downstream stainless steel market was in the off-season for consumption, with prices falling again recently. Coupled with planned production cuts by steel mills, demand for ferrochrome was limited. Buyers were cautious in taking deliveries, making it difficult to close ferrochrome transactions. Meanwhile, chrome ore prices continued to decline, pushing costs down and weakening support, making it difficult to halt the downward trend in ferrochrome prices. It is expected that the ferrochrome market will remain in the doldrums in the short term.

On the raw material side, chrome ore prices remained stable during the day. Buyers were cautious in purchasing, and overall market activity was low. On June 11, 2025, spot quotes for 40-42% South African powder at Tianjin Port were 58-59 yuan/mtu; quotes for 48-50% Zimbabwean powder were 58-59 yuan/mtu; quotes for 40-42% Turkish lump ore were 62-63 yuan/mtu; quotes for 46-48% chrome concentrate were 65-67 yuan/mtu; and futures quotes for 40-42% South African powder were $285-290/mt, unchanged from the previous trading day. Zimbabwean chrome ore traders offered discounts for sales, with quotes continuing to fall. Leveraging their cost advantage, they became the focus of buyers' attention recently, making it relatively easy to sell their products. Prices of South African and mainstream chrome ores were forced to decline due to scarce purchase demand. However, buyers were more aggressive, with low purchase willingness driven by bearish expectations and unrelenting pressure to drive down prices. It is expected that the chrome ore market will remain in the doldrums in the short term.