[SMM Daily Review] Ferrochrome prices are largely stable, with limited fluctuations in the chrome ore market

On July 7, 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 the day, the price of ferrochrome remained stable, with limited short-term market fluctuations. With stable steel tender prices and chrome ore prices, there were no significant changes in production costs, and producers had a low willingness to adjust prices, with concentrated offers in the range of 7,800-7,900 yuan/mt (50% metal content). Reduced production by downstream steel mills led to limited procurement of ferrochrome, and under weak demand, downstream buyers continued to drive down prices, resulting in limited actual transactions. It is expected that the ferrochrome market will remain stable in the short term.

On the raw material side, chrome ore prices remained stable on the day, with limited release of purchase demand and generally moderate market activity. On July 7, 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. 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 reduced production by steel mills during the off-season and increased chrome ore supply due to the suspension of ferrochrome smelting in South Africa, leading to relatively pessimistic expectations. Ferrochrome producers, constrained by poor expectations for the next round of steel tenders, were also cautious in purchasing chrome ore, with limited release of purchase demand. It is expected that the chrome ore market will remain stable in the short term.