[SMM Chrome Daily Review] Ferrochrome Production Increases Significantly, Chrome Ore Prices Rise Slightly

On July 31, 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), rising slightly by 50 yuan/mt (50% metal content) MoM from the previous trading day.

The ferrochrome market operated steadily during the day. Producers in the north completed maintenance, and the advantages of the rainy season in south China were favorable, leading to a peak in ferrochrome production in July. According to SMM data, China's high-carbon ferrochrome production increased significantly in July 2025, with a MoM increase of 7.52% and a YoY increase of 1.92%. Among them, production in Inner Mongolia increased by 5.37% MoM, while production in southern regions such as Sichuan, Guizhou, and Guangxi increased by 18.53% MoM. Additionally, with the implementation of coke price hikes and a slight increase in spot chrome ore quotes, the immediate smelting cost of ferrochrome rose. Producers had limited willingness to adjust prices, and the cost support effect strengthened. In the short term, ferrochrome prices remained firm with room for a slow increase. Meanwhile, the realization degree of downstream stainless steel production cut plans fell short of expectations, and the demand for ferrochrome purchases had yet to be fully released. It is expected that the ferrochrome market will remain strong and stable in the subsequent period.

In terms of raw materials, on July 31, 2025, the spot price for 40-42% South African powder at Tianjin Port was 54.5-55.5 yuan/mtu; the price for 40-42% South African raw ore was 49-51 yuan/mtu; the price for 46-48% Zimbabwe chrome concentrate powder was 56.5-57.5 yuan/mtu; the price for 48-50% Zimbabwe chrome concentrate powder ore was 57-59 yuan/mtu; and the price for 40-42% Turkish chrome lump ore was 60-61 yuan/mtu, increasing slightly by 0.5 yuan/mtu MoM from the previous trading day. In the futures market, 40-42% South African powder held steady at $265-270/mt.

The activity level in the chrome ore market increased during the day. Affected by production increase plans, ferrochrome producers engaged in stockpiling and purchasing operations, and spot chrome ore sales and transactions were relatively smooth. Zimbabwe chrome concentrate powder still had economic advantages, and overall supply remained tight, with good inquiry sentiment. Considering that most of the recently arrived cargoes were high-priced chrome ore from April, traders had high holding costs and limited willingness to sell at low prices. The transaction price for South African powder increased slightly. Meanwhile, there was strong demand for purchasing South African raw ore with stable quality. The chrome ore market was expected to operate generally stable with a slight rise.