[SMM Daily Review] Chromium market operates steadily with limited actual transactions

On July 1, 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, it was also 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. The ferrochrome market remained stable during the day. Although the flat steel tender price boosted market confidence and producers' willingness to raise prices increased, downstream purchase willingness remained low, and actual transactions in the retail market were still limited. Affected by the previous decline in chrome ore prices, the immediate smelting cost of ferrochrome has decreased. The flat steel tender price has expanded the profit margin for ferrochrome producers, prompting some producers to resume production. Additionally, with the conclusion of environmental protection checks, ferrochrome plants that had faced production constraints have returned to normal operations. It is expected that there will be a significant increase in ferrochrome production in July. In the short term, the ferrochrome market is expected to remain stable.

In terms of raw materials, chrome ore prices remained stable during the day, with most transactions being for restocking purchases driven by immediate needs. On July 1, 2025, the spot price for 40-42% South African powder ore at Tianjin Port was 54-55 yuan/mtu; 40-42% South African raw ore was priced at 48-50 yuan/mtu; 46-48% Zimbabwe chrome concentrate powder ore was quoted at 55.5-56.5 yuan/mtu; and 40-42% Turkish chrome lump ore was priced at 60-61 yuan/mtu, unchanged from the previous trading day. After the market sentiment regarding the flat steel tender price has been digested, the short-term purchase demand of ferrochrome producers has gradually been released, and inquiry sentiment has increased. Currently, most transactions are concentrated on Zimbabwe chrome concentrate powder ore, which is a rebound from the previous oversold situation. In addition, the South African cabinet plans to restrict chrome ore exports and impose additional taxes to stimulate the development of the domestic ferrochrome industry. The chrome market is paying close attention to this, with expectations of an increase in purchase costs. It is expected that the chrome ore market will remain stable in the short term.