[SMM Daily Review] Chromium series prices remain stable, with limited short-term market fluctuations

On July 2, 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), while that from Kazakhstan was 8,800-9,000 yuan/mt (50% metal content), unchanged from the previous trading day on a MoM basis. TISCO in Shanxi announced a tender price of 7,845 yuan for high-carbon ferrochrome purchases in July, down 50 yuan/mt (50% metal content) MoM. The ferrochrome market remained stable during the day, with producers showing increased reluctance to budge on prices. However, downstream steel mills' production cuts limited ferrochrome purchases, and price-driving efforts persisted, resulting in limited actual transactions. Additionally, with the decline in ferrochrome smelting costs, producers' profit margins increased. Coupled with the elimination of the impact of environmental protection checks, it is expected that ferrochrome production will increase significantly in July. Facing the stainless steel production cut plans from downstream industries, the market is relatively pessimistic about steel tenders next month. It is expected that the ferrochrome market will remain stable in the short term.

In terms of raw materials, chrome ore prices remained stable during the day, with limited purchase demand and moderate market activity. On July 2, 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 55.5-56.5 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. However, the quoted price for 40-42% South African raw ore was 49-51 yuan/mtu, up 1 yuan/mtu. On the futures front, the new round of overseas market quotes for 40-42% South African powder ore remained flat at $265/mt. Limited by the poor expectations for the next round of steel tenders, ferrochrome producers were relatively cautious in purchasing chrome ore, with limited purchase demand released. Additionally, the South African cabinet officially implemented measures to restrict chrome ore exports and planned to impose taxes on chrome ore exports to incentivize the development of the domestic ferrochrome industry, sparking continuous attention in the chrome market. Chrome ore traders expected an increase in purchase costs. It is expected that the chrome ore market will remain stable in the short term.