[SMM Daily Review] Ferrochrome prices remain stable, and chrome ore continues to operate steadily at flat prices

On July 15, 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 quotation 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.

There were no adjustments to the retail quotations for ferrochrome during the day, and short-term market fluctuations were relatively small. Currently, there are fewer low-priced supplies in the retail market, and ferrochrome producers prioritize fulfilling long-term agreement orders, with quotations concentrated in the 7,800-8,000 yuan/mt (50% metal content) range, and short-term adjustments and fluctuations are limited. Supported by the flat steel tender prices in July, ferrochrome prices are temporarily stable, awaiting the next round of steel tender offers. Overseas ferrochrome production continues to decrease, which has alleviated the rate of ferrochrome production surplus to a certain extent. However, the July steel tender prices were unexpectedly flat, allowing ferrochrome producers to repair their profits and resume production more actively, with a more significant increase in output. Meanwhile, downstream stainless steel producers are facing losses due to cost inversion during the off-season, and there are expectations for production cuts, which may weaken the future demand for ferrochrome. Therefore, the market is relatively pessimistic about the steel tender prices for next month, holding a bearish sentiment.

On the raw material side, on July 15, 2025, the spot quotation for 40-42% South African powder ore at Tianjin Port was 54-55 yuan/mtu; the quotation for 40-42% South African raw ore was 49-51 yuan/mtu; the quotation for 46-48% Zimbabwean chrome concentrate powder was 56-57 yuan/mtu; and the quotation for 40-42% Turkish chrome lump ore was 60-61 yuan/mtu, unchanged from the previous trading day on a MoM basis. In the futures market, 40-42% South African powder ore held steady at $265-270/mt.

The chrome ore market remained stable during the day, with all parties awaiting the next round of steel tender offers, and the overall sentiment was relatively mediocre. The overseas market quotation for chrome ore was $265/mt, which has been flat for four rounds. In the short term, the chrome ore market is expected to operate steadily. Ferrochrome producers mostly purchase chrome ore on demand, with spot orders for restocking being the main focus. Overall demand is average, and chrome ore prices lack upward momentum. Zimbabwean chrome ore with economic advantages is still awaiting arrival at ports. In cases of good demand, supply is tight, and price support is strong. The inquiry sentiment for South African raw ore has increased, but downgrading issues have affected actual trading volume.