[SMM Daily Review] Chromium market operates steadily, waiting for steel tenders to be launched

On July 16, 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 the short-term market was expected to remain stable. As the steel tender pricing approached, the market sentiment was relatively calm. Producer quotations and actual transaction prices were relatively stable, concentrating within the 7,800-8,000 yuan/mt (50% metal content) range, with limited short-term fluctuations. Overseas ferrochrome production continued to decrease, alleviating the surplus growth rate of ferrochrome to a certain extent. However, the July steel tender pricing was 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 faced losses due to cost inversion during the off-season for consumption, and there were expectations for production cuts, which may weaken the future demand for ferrochrome. Therefore, the market sentiment for next month's steel tender pricing was relatively pessimistic, with a bearish outlook.

On the raw material side, on July 16, 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. On the futures front, 40-42% South African powder ore remained stable at $265-270/mt.

The chrome ore market remained stable during the day, with all parties waiting for the next round of steel tender pricing. The overall sentiment was relatively mediocre. Ferrochrome producers mostly purchased chrome ore on demand, focusing on spot order restocking. The overall demand was average, and there was a lack of upward momentum for chrome ore prices. Recently, some traders have taken delivery to build inventory, but due to the unclear outlook for the future market, the volume of purchases was relatively small. Most traders were waiting for the official implementation of the steel tender before making subsequent procurement plans. Zimbabwean chrome ore with economic advantages was still waiting for arrival at ports. With strong demand, the supply of goods was tight, and the price support was strong. The inquiry sentiment for South African raw ore increased, but the issue of downgrading affected the actual transaction volume.