[SMM Ferrochrome Daily Review] Increased Supply of Imported Ferrochrome Supports Price Uptrend Amid High Costs

On August 20, 2025, the ex-factory price for 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 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, it was 8,800-9,000 yuan/mt (50% metal content), flat MoM from the previous trading day.

During the day, ferrochrome prices remained stable, with the market mostly waiting for new steel mill tender prices, expecting stability, and transactions were mediocre. In July, China's total imports of high-carbon ferrochrome amounted to 226,800 mt, up 14.1% MoM, among which the total imports from South Africa were 108,600 mt, up 47.54% MoM. The rebound in total ferrochrome imports, coupled with the continuous growth in domestic ferrochrome production, led to an overall trend towards a more relaxed supply. Considering the high planned production of downstream stainless steel, subsequent ferrochrome procurement demand is expected to be released, maintaining a tight balance in the supply-demand relationship. Cost side, during the day, the offer price from mainstream South African mines slightly increased, boosting spot prices to probe higher, with the cost pressure on ferrochrome production continuously increasing, supporting prices to fluctuate at highs.

Raw material side, on August 20, 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 ore, it was 59-60 yuan/mtu; and for 40-42% Turkish chrome lump ore, it was 60-61 yuan/mtu, flat MoM from the previous trading day. On the futures front, 40-42% South African powder was quoted at $269-275/mt; 48-50% Zimbabwean chrome concentrate was quoted at $335-345/mt, up $2/mt MoM.

During the day, market sentiment for chrome ore strengthened, with the overseas market quote for 40-42% South African chrome concentrate rising by $2 to $269/mt, enhancing confidence in the spot market, and some traders showing further intentions to probe higher. Supply and demand side, in July, China's total imports of chrome ore amounted to 1.975 million mt, up 20.39% MoM. Meanwhile, the output of downstream ferrochrome producers continued to increase, with robust demand, leading to an overall tight balance in chrome ore supply and demand. Recently, cargo sources have been relatively concentrated, with high holding costs, providing some support to prices. Inquiry activity for Zimbabwean chrome ore has been active, with demand for South African chrome ore being released, and quotations steadily increasing. It is expected that the chrome ore market will generally be stable with slight rise.