[SMM Weekly Review] Steel Bidding Lands at Flat Price, Exceeding Expectations; Chromium Market Remains Stable for Now

On June 27, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 7,750-7,900 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 of high-carbon ferrochrome from South Africa was 7,800-8,000 yuan/mt (50% metal content); and the quoted price of high-carbon ferrochrome from Kazakhstan was 8,800-9,000 yuan/mt (50% metal content), unchanged from the previous day on a MoM basis. This week, the ferrochrome market operated smoothly, with steel tenders landing at flat prices, boosting market confidence. Ferrochrome prices stopped falling and stabilized, with an increased willingness to adjust prices. On June 24, Tsingshan announced the July high-carbon ferrochrome procurement tender price at 8,095 yuan/mt (50% metal content), unchanged from June on a MoM basis, exceeding market expectations of a 300-400 yuan/mt (50% metal content) decline from the previous period. The ferrochrome market improved somewhat, with inquiry sentiment rebounding. Quoted prices in Inner Mongolia rose slightly, concentrating within the 7,750-7,900 yuan/mt (50% metal content) range. However, influenced by news of downstream stainless steel production cuts, actual ferrochrome transactions remained limited, and the market was relatively mediocre. Additionally, high-priced chrome ore arrived at ports in the early stage, increasing cost pressure for ferrochrome producers, who had a strong reluctance to budge on prices. It is expected that the ferrochrome market will operate steadily in the short term, with close attention paid to subsequent changes in stainless steel production schedules.

On the raw material side, chrome ore prices stopped falling and rebounded this week, with market inquiry enthusiasm increasing. On June 27, 2025, the spot price of 40-42% South African powder ore at Tianjin Port was 54-55 yuan/mtu; the quoted price of 40-42% South African raw ore was 48-50 yuan/mtu; the quoted price of 46-48% Zimbabwe chrome concentrate powder was 55.5-56.5 yuan/mtu; and the quoted price of 40-42% Turkish chrome lump ore was 60-61 yuan/mtu, unchanged from the previous trading day on a MoM basis. The landing of steel tenders at flat prices boosted market confidence, with many ferrochrome producers planning to end maintenance. Ferrochrome production was expected to increase, gradually releasing the demand for chrome ore procurement and restocking. Inquiry and purchase activity for chrome ore improved during the week. Zimbabwe chrome ore, affected by a large decline in the early stage, took the lead in stopping falling and rebounding, rising slightly by 0.5 yuan/mtu. South African chrome ore futures continued to be shipped at a flat price of $265/mt, with chrome ore traders mostly readjusting their purchase plans. However, due to the poor downstream stainless steel market and weak demand, production cut plans affected future market expectations, and the chrome market remained relatively cautious. It is expected that the chrome ore market will operate smoothly in the short term.