[SMM Chrome Daily Review] Optimistic Expectations for Steel Bidding Prices Strengthen Market Sentiment for Chrome Ore

On August 21, 2025, the ex-factory price for high-carbon ferrochrome in Inner Mongolia was 7950-8100 yuan/mt (50% metal content); in Sichuan and north-west China, it was 8000-8100 yuan/mt (50% metal content); in east China, the quotation 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), flat MoM from the previous trading day.

During the day, ferrochrome prices remained stable, with the market awaiting new steel mill tender prices, and sentiment was optimistic, expecting a rise. Chrome ore prices continued to increase, coupled with rising freight costs, keeping production costs high, strongly supporting ferrochrome prices fluctuate at highs. Additionally, downstream steel mills were mostly restocking, and ferrochrome producers focused on fulfilling orders, with current retail tradable volumes tight, further bolstering the producers' resolve to refuse to budge on prices.

In terms of raw materials, on August 21, 2025, the spot price for 40-42% South African concentrate at Tianjin Port was 55.5-56 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 59-61 yuan/mtu; and for 40-42% Turkish chrome lump ore, it was 60-61 yuan/mtu, up 0.25 yuan/mtu MoM from the previous trading day. In the futures market, 40-42% South African concentrate was quoted at $269-275/mt; 48-50% Zimbabwean chrome concentrate was quoted at $335-345/mt, flat MoM.

During the day, the chrome ore market showed good inquiry activity, with futures prices rising and boosting spot chrome ore prices. The overseas market quotation for 40-42% South African chrome concentrate from major mines was $269/mt, enhancing confidence in the spot market. Recent transactions mainly concentrated on Zimbabwean chrome concentrate ore and South African raw ore. Given the positive outlook, ferrochrome producers were highly motivated, with high planned production, leading to some release of chrome ore procurement demand, which gradually pushed up chrome ore prices.