[SMM Daily Review] Chromium prices remain stable, with sluggish market transactions

On July 3, 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 offer 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 limited procurement from downstream steel mills due to production cuts, and price-driving efforts persisted, resulting in limited actual transactions. However, with the recent arrival of high-priced chrome ore, the smelting cost of ferrochrome for factories increased, strengthening price support and leading to a strong reluctance among producers to budge on prices. It is expected that the ferrochrome market will remain stable in the short term.

On the raw material side, chrome ore prices remained stable during the day, with limited release of purchase demand and general market activity. On July 3, 2025, the spot offer for 40-42% South African powder at Tianjin Port was 54-55 yuan/mtu; for 40-42% South African raw ore, it was 49-51 yuan/mtu; for 46-48% Zimbabwe chrome concentrate powder, it was 55.5-56.5 yuan/mtu; and for 40-42% Turkish chrome lump ore, it was 60-61 yuan/mtu, unchanged from the previous trading day on a MoM basis. In the futures market, the overseas market offer for 40-42% South African powder was $265-270/mt. Chrome ore traders were mostly bearish on the market outlook, influenced by news of steel mill production cuts during the off-season, and expectations were pessimistic. Ferrochrome producers, constrained by poor expectations for the next round of steel tenders, were also relatively cautious in their chrome ore procurement, with limited release of purchase demand. Additionally, the South African cabinet's plan to impose an export tax on chrome ore faced opposition from the South African Minerals Council, and SMM will continue to monitor subsequent developments. It is expected that the chrome ore market will remain stable in the short term.