[SMM Chrome Weekly Review] Ferrochrome market sees improved transactions, chrome ore market operates steadily

On August 8, 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), unchanged MoM from the previous trading day.

This week, the chrome ore market held up well, with the immediate smelting cost of high-carbon ferrochrome continuing to rise. The downstream stainless steel planned production rebounded to a high level, jointly driving the price of ferrochrome to rise. On the cost side, the fifth round of coke price increases was implemented during the week, with a rise of 50 yuan/mt, and the sixth round was planned, further pushing up the coke cost for ferrochrome smelting. Meanwhile, the demand for Zimbabwe chrome concentrate powder strengthened, and the spot price of chrome ore rose slightly. Additionally, as some ferrochrome producers used high-priced chrome ore purchased earlier for production, the cost pressure on ferrochrome producers increased, supporting their mindset to refuse to budge on prices and explore price increases. In northern China, the quoted and transaction prices rose slightly by 25 yuan, concentrating within the 7,850-8,000 yuan/mt (50% metal content) range. On the supply and demand side, the downstream stainless steel planned production rebounded to a high level of 3.3 million mt, with many starting to stock up raw materials for the September-October peak season consumption, lifting the purchase demand for ferrochrome raw materials. The transaction activity of ferrochrome was good during the week, and it is expected that the ferrochrome price will remain stable in the future market, with potential for a slight increase.

On the raw material side, on August 8, 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 US dollars/mt; and the offer for 48-50% Zimbabwe chrome concentrate powder was 330-340 US dollars/mt.

This week, the chrome ore market mainly operated steadily, with relatively limited inquiries and transactions, and traders maintaining a calm mindset. The further increase in ferrochrome production boosted the release of demand for chrome ore purchases, and traders were relatively optimistic about the future chrome ore price. In the spot market, there were many inquiries for Zimbabwe chrome concentrate powder. Due to the tight tradeable volume, the price rose slightly by 0.5-1 yuan/mtu during the week. However, due to the recent large-scale arrival of South African powder, the inventory supply increased significantly. Coupled with the fact that most ferrochrome producers had completed their main raw material stocking and made fewer purchases, the price remained stable within the 54.5-55.5 yuan/mtu range. In the futures market, the overseas market quoted price for 40-42% South African powder rose slightly by 2 US dollars to 267 US dollars/mt during the week. Driven by the expectation of a stable market outlook, chrome ore traders have been actively purchasing. Futures trading activity has rebounded somewhat. On the supply and demand side, chrome ore inventory buildup continued this week, with total port inventory reaching 3.1483 million mt, up 1.31% MoM. Among this, the total inventory at Tianjin Port was 2.5119 million mt, up 2.82% MoM. Iron plants have been purchasing as needed, resulting in low outflows from warehouses of chrome ore. However, overseas shipments of chrome ore have remained high and have recently arrived at ports in concentrated batches, leading to a significant increase in inflows. It is expected that chrome ore inventory will continue to remain high, and the chrome ore market will operate steadily.