[SMM Daily Review] Chrome ore weakens, ferrochrome holds steady, with limited transactions

On June 12, 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. Ferrochrome prices remained stable during the day, with downstream buyers exercising caution in purchases and showing a growing tendency to drive down prices. Ferrochrome production may fall short of expectations. However, as stainless steel, a downstream product, is in the off-season of consumption, demand remains sluggish, resulting in extremely limited ferrochrome purchases and further increasing pressure on producers. It is expected that the actual transaction prices will continue to decline. Recently, the prices of chrome ore futures arriving at ports have gradually increased, driving up the production costs of ferrochrome. Ferrochrome producers are clearly showing a mindset of refusing to budge on prices to maintain stability. It is expected that the ferrochrome market will remain in a stalemate in the short term.

On the raw material side, chrome ore prices fell again during the day, with the market mostly adopting a wait-and-see attitude. The mindset of rushing to buy amid continuous price rise and holding back amid price downturn affected transactions, resulting in low overall market activity. On June 12, 2025, the spot quotes for 40-42% South African powder at Tianjin Port were 57-58 yuan/mtu; the quotes for 48-50% Zimbabwean powder were 57-58 yuan/mtu; and the spot quotes for 46-48% chrome concentrate powder were 56-57 yuan/mtu, down 1 yuan/mtu from the previous trading day. Ferrochrome producers mostly chose to purchase futures for inventory stocking, with extremely limited spot transactions of chrome ore. In addition, according to SMM data, overseas shipments of chrome ore have gradually increased, with port arrivals climbing simultaneously. The rise in chrome ore inventory at ports has increased the pressure on traders to hold stocks. Under the circumstances of impaired sentiment, traders have been forced to lower their quotes, leading to a continuous downturn in the chrome ore market. It is expected that the chrome ore market will remain in the doldrums in the short term.