[SMM Chromium Daily Review] Steel Bidding Expected to Decline, No Adjustments in the Market Yet

On July 24, 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), while that from Kazakhstan was 8,800-9,000 yuan/mt (50% metal content), unchanged from the previous trading day on a MoM basis.

The ferrochrome market operated smoothly during the day, with prices remaining unchanged. Most participants were waiting for offers from mainstream steel mills. TISCO was the first to announce its August steel tender price at 7,645 yuan/mt (50% metal content), a decrease of 200 yuan from July, dampening the sentiment for price increases driven by macro tailwinds. However, considering the cost side, the second round of coke price increases had been implemented, leading to a slight rise in the immediate smelting cost of ferrochrome, which provided some support for ferrochrome prices. Moreover, as ferrochrome was mainly delivered under long-term agreements, with limited tradeable volumes in the market, producer quotes remained firm, and ferrochrome prices were expected to be largely stable in the short term.

In terms of raw materials, on July 24, 2025, the spot offer for 40-42% South African chrome ore fines at Tianjin Port was 54-55 yuan/mtu; for 40-42% South African raw ore, it was 49-51 yuan/mtu; for 46-48% Zimbabwean chrome concentrate fines, it was 56-57 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, 40-42% South African chrome ore fines held steady at $265-270/mt.

The chrome ore market continued its previous stable trend during the day, with quotes remaining unchanged. TISCO was the first to announce a decrease of 200 yuan in its steel tender price, which was in line with market expectations. Currently, many participants were observing whether Tsingshan Group would follow TISCO's lead and lower its August steel tender price, leading to a slowdown in purchase inquiries. Meanwhile, the market was paying close attention to the new round of futures offers from large mainstream mines in South Africa to adjust their subsequent purchase and inventory-building plans. Additionally, as ferrochrome producers had relatively sufficient stockpiling inventories, purchase activities had slowed down, and adjustments would be made after mainstream steel mills' steel tenders were finalized. Overall, market activity was moderate.