[SMM Chrome Daily Review] Ferrochrome transactions were active overall, while the chrome ore market was relatively quiet

On August 6, 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 8,100-8,250 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), with some prices rising slightly by 25 yuan/mt (50% metal content) MoM from the previous trading day.

On the day, the ferrochrome market was highly active, with downstream demand improving and transaction volumes increasing. Additionally, significant cost support underpinned ferrochrome prices, and it is expected that the ferrochrome market will remain stable and improve in the future. In August, ferrochrome production is expected to increase slightly further, and downstream stainless steel planned production has rebounded to a high level. The supply-demand balance of ferrochrome will maintain a tight balance, supporting the stable operation of ferrochrome prices. On the cost side, there are still expectations for coke and chrome ore prices to rise, and smelting costs for ferrochrome have become the main supporting factor for ferrochrome prices. It is expected that the ferrochrome market will remain strong and stable in the future.

In terms of raw materials, on August 6, 2025, the spot price of 40-42% South African powder at Tianjin Port was 54.5-55.5 yuan/mtu; the quoted price of 40-42% South African raw ore was 49-51 yuan/mtu; the quoted price of 46-48% Zimbabwe chrome concentrate powder was 57-58 yuan/mtu; the quoted price of 48-50% Zimbabwe chrome concentrate powder ore was 58-59.5 yuan/mtu; and the quoted price of 40-42% Turkish chrome lump ore was 60-61 yuan/mtu, unchanged MoM from the previous trading day. On the futures front, 40-42% South African powder held steady at $267-270/mt; and the offer price of 48-50% Zimbabwe chrome concentrate powder was $330-340/mt.

On the day, inquiries and transactions in the chrome ore market were relatively quiet, with no price adjustments. In the spot market, ferrochrome producers had completed their raw material stocking earlier and were mainly focused on restocking recently, with limited purchasing demand being released. On the other hand, the tradeable volume of chrome ore decreased, and the arrival of high-priced chrome ore increased holding costs, leading to strong reluctance to budge on prices among chrome ore traders. On the futures front, overseas 40-42% South African powder from the most-traded contract mine was offered at $267/mt, up $2/mt MoM from July 29. The sentiment for chrome ore futures to rise was prominent, and domestic traders, influenced by a bullish outlook, made many inquiries and purchases, resulting in concentrated transactions in the chrome ore market in the near term. Overall, factors such as downstream demand, holding costs, and tight supply of goods have jointly contributed to the stable and improving operation of the chrome ore market.