[SMM Daily Review] Weak demand makes it difficult to refuse to budge on prices; chromium market prices decline

On June 17, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 7,700-7,900 yuan/mt (50% metal content). In Sichuan and north-west China, the ex-factory price of high-carbon ferrochrome was 7,800-7,900 yuan/mt (50% metal content), down 50-100 yuan/mt (50% metal content) MoM. The ferrochrome market was in the doldrums during the day, with weak demand and falling costs making it difficult for producers to refuse to budge on prices, leading many to lower their quotes. Downstream stainless steel was in the off-season for consumption, with continuous inventory buildup, limiting procurement of ferrochrome and making it difficult for producers to sell their products. Meanwhile, chrome ore prices continued to decline, reducing the smelting cost of ferrochrome and weakening price support. Additionally, as the new round of steel procurement tenders approached, the market was mostly on the sidelines, with a predominantly bearish sentiment. It is expected that the ferrochrome market will remain weak in the short term.

On the raw material side, chrome ore prices continued to decline, with falling futures prices driving down spot prices. On June 17, 2025, in terms of spot prices, 40-42% South African fines at Tianjin Port were quoted at 56-57 yuan/mtu; 40-42% South African raw ore was quoted at 49-50 yuan/mtu; 46-48% Turkish fines were quoted at 64-65 yuan/mtu, down 0.5-1.5 yuan/mtu from the previous trading day. 40-42% South African fines futures were quoted at $275-280/mt, down $2.5 MoM. The decline in chrome ore futures prices drove down domestic spot prices, with inquiries but limited actual transactions. As steel procurement tenders approached, the market was cautious and on the sidelines. Combined with the weakening downstream and ferrochrome markets, procurement demand for chrome ore was limited, with a focus on small spot orders for restocking. Zimbabwean chrome ore, having fallen earlier and by a larger margin, saw more cargo dumping, and its current price is relatively stable. The market is bearish on the next month's steel procurement tenders, expecting further downside room for chrome ore prices, and the market is expected to remain weak in the short term.