[SMM Chrome Daily Review] Ferrochrome prices are steady with an upward trend, no adjustments in the chrome ore market

On August 11, 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 from the previous trading day on a MoM basis.

Today, the ferrochrome market is operating with strong stability. Trading was slightly mediocre at the beginning of the week, but with cost support and the release of downstream demand, producers' mindset of refusing to budge on prices and exploring price increases has become notable. The fifth round of coke price increases has been implemented, leading to a further rise in the cost of coke used in ferrochrome smelting. Chrome ore prices are temporarily stable, and the smelting cost of ferrochrome remains at a relatively high level, pushing ferrochrome prices to rise gradually. In addition, macroeconomic policies continue to have an impact. The futures of downstream stainless steel have surged significantly, driving stronger spot price transactions and a continuous pullback in social inventory. Steel mills mostly have plans to increase production, with planned production rising to 3.3 million mt, leading to an increase in demand for ferrochrome purchases and expected to support price increases in ferrochrome. There is still no news of production resumptions in overseas ferrochrome markets. Glencore stated that it is seeking cooperation with the government to address the current dilemma in the chrome market (including measures such as obtaining lower-cost electricity, eliminating illegal exports, and establishing special economic zones), but the ferrochrome smelters that have been temporarily suspended this year will not resume production for the time being. Therefore, the continuous decrease in overseas ferrochrome imports has become a major influencing factor in judging the ferrochrome supply situation in 2025.

In terms of raw materials, on August 11, 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 from the previous trading day on a MoM basis. In the futures market, 40-42% South African powder held steady at $267-270/mt; and 48-50% Zimbabwe chrome concentrate powder was quoted at $330-340/mt.

The chrome ore market is operating smoothly today, with no adjustments in quoted prices and relatively quiet trading. Affected by the increase in ferrochrome production and the rise in futures prices, chrome ore traders are mostly optimistic about the future chrome ore prices, with a prominent bullish mindset. Chrome ore has been arriving at ports in a concentrated manner recently, leading to a continuous increase in chrome ore port inventory. However, many ferrochrome plants self-source raw materials, so the supply of spot chrome ore is relatively concentrated, and traders have shown a reluctance to sell. In the futures market, affected by bullish expectations, overseas chrome ore quoted prices have increased slightly, and shipments have been controlled, leading to increased competition pressure for traders purchasing. In addition, the news of Zimbabwe's plan to promote a comprehensive ban on chrome ore exports has attracted market attention. If the final policy is implemented, domestic chrome ore supply may experience a tightening situation, and China's reliance on South African chrome ore will further increase. Subsequent developments in Zimbabwe's chrome ore export policy will continue to be closely monitored.