[SMM Daily Review] Ferrochrome Expected to Be Bearish, Chrome Ore Prices Continue to Fall

On June 19, 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), unchanged MoM. As the steel tender announcement approaches, the market is mostly in a wait-and-see mode, with limited willingness among factories to adjust prices, and quotations remain relatively stable. Chrome ore prices continue to fall, and market expectations have become more pessimistic. Coupled with weak downstream stainless steel consumption, ferrochrome sales are difficult, and transactions remain sluggish. It is expected that the ferrochrome market will be in the doldrums in the short term.

On the raw material side, chrome ore prices continue to decline, with short-term consecutive drops in futures prices driving spot prices lower. On June 19, 2025, in terms of spot prices, the quotation for 40-42% South African fines at Tianjin Port was 54-56 yuan/mtu, and the quotation for 46-48% Zimbabwe chrome concentrate fines was 55-56 yuan/mtu, down 0.5 yuan/mtu from the previous day. The futures price for 40-42% South African fines fell to the range of 265-270 US dollars/mt, down 10 US dollars from the previous trading day. The proactive reduction of chrome ore futures quotations has influenced the sentiment of domestic traders, and the obvious downward trend in the market has forced spot chrome ore prices to follow suit. Coupled with the relatively sufficient raw material inventory among ferrochrome producers, most of which is for restocking spot orders, actual transactions of chrome ore are limited. Some traders are offering discounts to reduce losses. It is expected that the chrome ore market will be in the doldrums in the short term.