[SMM Chrome Daily Review] Ferrochrome Prices Steadily Increase, Chrome Ore Transactions Gradually Rise

On August 18, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 7900-8100 yuan/mt (50% metal content); in Sichuan and north-west China, it was 7900-8100 yuan/mt (50% metal content); in east China, the quotation for high-carbon ferrochrome was 8100-8300 yuan/mt (50% metal content); for South African high-carbon ferrochrome, the quotation was 7900-8000 yuan/mt (50% metal content); and for Kazakhstan high-carbon ferrochrome, the quotation was 8800-9000 yuan/mt (50% metal content), up 25-50 yuan/mt (50% metal content) MoM from the previous trading day.

During the day, the price of ferrochrome rose slightly. At the beginning of the week, inquiries and transactions were good, and producers strongly refused to budge on prices, with many optimistic about future ferrochrome prices. Cost side, smelting costs for ferrochrome fluctuated at highs and continued to rise. Coke prices saw six rounds of increases, while spot chrome ore prices kept rising, coupled with increased freight, supporting ferrochrome producers' efforts to raise prices. Supply and demand side, South African chromium enterprises stated again that there are no plans for ferrochrome production resumptions within 2025. Overseas ferrochrome supply is tight, while domestic ferrochrome has multiple plans for increased production, with ferrochrome supply expected to maintain a tight balance. Downstream, stainless steel is expected to enter the September-October peak season, with steel mills' planned production significantly rebounding, leading to continuous growth in subsequent demand for ferrochrome, driving strong and stable operation of ferrochrome prices.

Raw material side, on August 18, 2025, the spot price for 40-42% South African powder at Tianjin Port was 55-56 yuan/mtu; 40-42% South African raw ore was quoted at 49-51 yuan/mtu; 46-48% Zimbabwean chrome concentrate was quoted at 57.5-58.5 yuan/mtu; 48-50% Zimbabwean chrome concentrate ore was quoted at 59-60 yuan/mtu; 40-42% Turkish chrome lump ore was quoted at 60-61 yuan/mtu, flat MoM from the previous trading day. On the futures front, 40-42% South African powder was offered at $267-275/mt; 48-50% Zimbabwean chrome concentrate was offered at $335-345/mt, also flat MoM.

During the day, there were no adjustments to chrome ore prices, but inquiries and transactions performed well, with more purchasing actions by iron plants, increasing market activity. Affected by the upcoming vehicle traffic control at Tianjin Port, chrome ore transportation capacity became tight, with freight rates rising by 20%. Iron plants mostly engaged in stockpiling and restocking, resulting in an increase in recent chrome ore trading volume. Additionally, current holding costs for traders are high, and sources are concentrated, leading to a sentiment of holding back sales. Ferrochrome prices have a trend of probing higher, mainly waiting for next month's steel mill tender prices. The chrome ore market is expected to operate steadily.