[SMM Daily Review] Ferrochrome in the doldrums, chrome ore prices decline

On June 16, 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 for the day. As the steel tender approached, the market was mostly in a wait-and-see mode, with participants' bearish sentiment increasing. Downstream stainless steel continued to operate at low levels, affecting the confidence of ferrochrome producers, and prices were expected to continue to decline in the future. In addition, the high-priced chrome ore purchased by factories in the early stage would arrive at ports successively, driving up production costs and potentially compressing manufacturers' profit margins. Meanwhile, the futures price of chrome ore continued to fall, making market sentiment more pessimistic, with the mainstream view being bearish on the next round of steel tenders. It is expected that the ferrochrome market will be in the doldrums in the short term.

On the raw material side, chrome ore prices once again faced downward adjustments, with the decline in futures prices driving down spot prices. On June 16, 2025, in terms of spot prices, the offer for 40-42% South African fines at Tianjin Port was 57-58 yuan/mtu; 48-50% Zimbabwean fines were priced at 57-58 yuan/mtu; 46-48% chrome concentrate fines were at 56-57 yuan/mtu; 46-48% Turkish fines were quoted at 65-67 yuan/mtu, unchanged from the previous trading day; 40-42% Turkish lump ore was quoted at 61-62 yuan/mtu, down 1 yuan/mtu MoM. The new round of offer prices for 40-42% South African fines futures was $275/mt, down $10 from June 5 and having declined by $20 in half a month. The support for the chrome ore market weakened, and it was expected to continue to decline gradually. Inquiries for the day were mediocre, mainly focused on digesting price changes, with limited reactions. As the next month's steel tender approached, the market was mostly cautious and in a wait-and-see mode. It is expected that the chrome ore market will remain in the doldrums in the short term.