[SMM Daily Review] Sentiment in inquiries improves, market operates steadily for now

On June 25, 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, it was 7,800-7,900 yuan/mt (50% metal content). The quoted price for high-carbon ferrochrome from South Africa was 7,800-8,000 yuan/mt (50% metal content), and from Kazakhstan, it was 8,800-9,000 yuan/mt (50% metal content), unchanged from the previous trading day on a MoM basis. The ferrochrome market remained stable during the day, with steel bidding prices landing flat, exceeding expectations, boosting market confidence. The risk of ferrochrome price declines diminished, and producers' reluctance to budge on prices strengthened. Coupled with the unchanged overseas market quotes for a new round of chrome ore, production costs ceased to decline, providing some support for ferrochrome prices. However, as the steel bidding process was relatively short, market sentiment needed further digestion and response. Although inquiry enthusiasm increased, actual transactions remained relatively limited. Close attention should be paid to the downstream stainless steel production schedule in the future. It is expected that the ferrochrome market will remain stable in the short term.

On the raw material side, chrome ore prices stopped falling and rebounded, with traders reducing their selling actions and strengthening their reluctance to budge on prices. On June 25, 2025, the spot price for 40-42% South African powder ore at Tianjin Port was 54-55 yuan/mtu; 46-48% Zimbabwe chrome concentrate powder was quoted at 55-56 yuan/mtu; and 40-42% Turkish chrome lump ore was quoted at 60-61 yuan/mtu, unchanged from the previous trading day on a MoM basis. In the futures market, a large mine in South Africa at Tianjin Port offered a new round of bidding price for 40-42% chrome concentrate powder at $265/mt, unchanged from June 18. Affected by previous pessimistic expectations, chrome ore traders mostly sold at low prices, with limited inventory in hand, and their reluctance to budge on prices strengthened. Additionally, the flat landing of steel bidding boosted market confidence, and the demand for ferrochrome producers to purchase chrome ore began to be released, with inquiry sentiment rising. It is expected that the ferrochrome market will remain stable in the short term.