[SMM Chromium Daily Review] Bullish sentiment strengthens in the chromium market; prices remain strong and stable driven by costs and demand

On August 5, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 7,850-8,000 yuan/mt (50% metal content); in Sichuan and north-west China, it was 7,900-8,000 yuan/mt (50% metal content); in east China, the quoted price was 8,100-8,200 yuan/mt (50% metal content); in South Africa, it was 7,800-8,000 yuan/mt (50% metal content); and in Kazakhstan, it was 8,800-9,000 yuan/mt (50% metal content), unchanged from the previous trading day on a MoM basis.

Within the day, there were no adjustments to the ferrochrome prices. Improved demand drove stronger trading volumes, while cost support remained strong, creating a bullish market sentiment. Beigang New Material announced a steel mill tender price for high-carbon ferrochrome in August at 7,995 yuan/mt (50% metal content), down 100 yuan/mt (50% metal content) from July. Although the tender prices of mainstream stainless steel mills fell by 100-200 yuan, the retail ferrochrome market, supported by both costs and demand, showed an upward price trend. Coke prices continued to increase, chrome ore spot prices explored upward movements, and the strong smelting cost of ferrochrome supported price increases. Considering that the planned production of stainless steel in August may rebound to 3.3 million mt, leading to increased procurement demand for ferrochrome, the ferrochrome market is expected to operate generally stable with a slight rise.

In terms of raw materials, on August 5, 2025, the spot price of 40-42% South African fines at Tianjin Port was 54.5-55.5 yuan/mtu; 40-42% South African raw ore was quoted at 49-51 yuan/mtu; 46-48% Zimbabwe chrome concentrate fines were quoted at 57-58 yuan/mtu; 48-50% Zimbabwe chrome concentrate fines were quoted at 58-59 yuan/mtu; and 40-42% Turkish chrome lump ore was quoted at 60-61 yuan/mtu, unchanged from the previous trading day on a MoM basis. In the futures market, 40-42% South African fines held steady at $265-270/mt; 48-50% Zimbabwe chrome concentrate fines were offered at $330-340/mt.

Within the day, chrome ore prices remained stable, with limited fluctuations in inquiry and trading volumes, and a relatively calm market sentiment. In the spot market, on the one hand, the procurement and restocking demand of ferrochrome producers was released, increasing overall market trading activity; on the other hand, influenced by previous pessimistic expectations, chrome ore traders mostly sold at low prices, resulting in a relatively tight supply of chrome ore and firm quotes from miners. In addition, as most of the high-priced chrome ore arrived recently, traders' holding costs increased, and their willingness to explore upward price movements strengthened. In the futures market, the release of procurement and inquiry demand drove up the price of South African chrome ore. Although the overseas mainstream mine's quoted price for 40-42% South African fines remained at $265/mt, trading volumes increased significantly, with some transaction prices concentrated at $267-268/mt. Meanwhile, the overseas market's quoted price for 42-44% South African fines rose to $285-290/mt, and domestic traders faced difficulties in purchasing under quantity control measures. Overall, factors such as downstream demand, holding costs, and tight supply of goods jointly contributed to the stable and positive operation of the chrome ore market.