[SMM Chrome Daily Review] Tight Supply Boosted Ferrochrome Prices, Chrome Ore Purchase Inquiries Increased

On August 19, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 7,950-8,100 yuan/mt (50% metal content); in Sichuan and north-west China, it was 8,000-8,100 yuan/mt (50% metal content); in east China, the quotation for high-carbon ferrochrome was 8,100-8,300 yuan/mt (50% metal content); for South African high-carbon ferrochrome, the quotation was 7,900-8,000 yuan/mt (50% metal content); and for Kazakhstan high-carbon ferrochrome, the quotation was 8,800-9,000 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, with expectations for a stronger trend in the future. As factories have been mainly fulfilling long-term contract orders recently, retail supplies are tight, and the amount of spot cargo available for trade is limited, leading to continued increases in transaction prices. Additionally, port congestion has increased chrome ore freight costs, raw material prices have risen, inventories are tight, and production cost pressures on factories have increased, further encouraging ferrochrome producers to refuse to budge on prices and explore higher prices. Entering a new round of steel mill tender pricing cycles, given the rebound in stainless steel planned production to high levels, demand for ferrochrome has increased. Producers' expectations are mostly stable, with some holding bullish views, and it is expected that the ferrochrome market will continue to operate steadily with a positive outlook.

In terms of raw materials, on August 19, 2025, the spot price for 40-42% South African powder at Tianjin Port was 55-56 yuan/mtu; for 40-42% South African raw ore, it was 49-51 yuan/mtu; for 46-48% Zimbabwean chrome concentrate, it was 57.5-58.5 yuan/mtu; for 48-50% Zimbabwean chrome concentrate, it was 59-60 yuan/mtu; and for 40-42% Turkish chrome lump ore, it was 60-61 yuan/mtu, remaining unchanged MoM from the previous trading day. In the futures market, 40-42% South African powder was quoted at $267-275/mt; 48-50% Zimbabwean chrome concentrate was quoted at $335-345/mt, also remaining unchanged MoM.

During the day, there were no adjustments to chrome ore prices, and inquiries and transactions remained stable. With the increase in ferrochrome production, manufacturers are concerned about rising chrome ore prices, which would add to cost pressures. Therefore, recent transactions for chrome ore have been concentrated, increasing market activity. Additionally, vehicle restrictions at Tianjin Port at month-end have hindered chrome ore transportation. Considering raw material inventory issues, there have been more stockpiling and restocking operations, helping to stabilize chrome ore prices. As the next month's steel mill tender pricing approaches, chrome ore traders are becoming increasingly cautious, and it is expected that the chrome ore market will remain stable.