[SMM Daily Review] Ferrochrome market operates steadily, with limited fluctuations in the chrome ore market

On July 9, 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. Ferrochrome prices remained stable during the day, with limited short-term market fluctuations. On the supply and demand side, with downstream stainless steel production continuing to decrease, ferrochrome production increased significantly, potentially exerting some pressure on future prices. On the cost side, chrome ore prices remained stable, and the immediate smelting cost of ferrochrome provided relatively stable support for ferrochrome prices. Given the relatively small market fluctuations, producers had low willingness to adjust prices, with quoted prices concentrated in the 7,800-7,900 yuan/mt (50% metal content) range. It is expected that the ferrochrome market will operate smoothly in the short term.

On the raw material side, chrome ore prices remained stable during the day, with short-term purchasing demand fully released, and most market participants adopting a wait-and-see attitude. On July 9, 2025, the spot price for 40-42% South African powder at Tianjin Port was 54-55 yuan/mtu; 40-42% South African raw ore was quoted at 49-51 yuan/mtu; 40-42% Turkish chrome lump ore was quoted at 60-61 yuan/mtu, unchanged from the previous trading day; 46-48% Zimbabwe chrome concentrate powder was quoted at 56-57 yuan/mtu, up slightly by 0.5 yuan/mtu from the previous trading day. On the futures front, 40-42% South African powder remained stable at $265-270/mt. The current market trend is stable, with steel tenders exceeding expectations and remaining flat, coupled with ferrochrome production increase plans, prompting ferrochrome producers to gradually purchase raw materials. Rigid demand is gradually being released at the beginning of the month, with inquiry sentiment rebounding and actual transactions increasing. Zimbabwe chrome ore supply is tight due to previous low-price dumping, leading to a slight price increase. Recently, most ferrochrome producers have completed their raw material restocking. Considering the widespread suspension of South African ferrochrome smelting operations, the market expects subsequent chrome ore supply to continue increasing. Therefore, most market participants are adopting a wait-and-see attitude, awaiting the subsequent development of South African chrome ore export tax policies. It is expected that the chrome ore market will operate smoothly in the short term.