[SMM Chromium Daily Review] Steel Bidding Rise Boosts Market Confidence, Strong Sentiment for Price Hikes Leads to Many Quotation Increases

On August 25, 2025, the ex-factory price for high-carbon ferrochrome in Inner Mongolia was 8,000-8,100 yuan/mt (50% metal content); in Sichuan and north-west China, it was 8,000-8,200 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, the quotation was 8,800-9,000 yuan/mt (50% metal content), up 50-75 yuan/mt (50% metal content) MoM from the previous trading day.

During the day, mainstream steel mills announced the September steel mill tender price for high-carbon ferrochrome at 8,295 yuan/mt (50% metal content), an increase of 300 yuan, which met the market's prior expectations. This significantly boosted confidence in the ferrochrome market. Ferrochrome producers saw their profit margins expand, leading to increased production enthusiasm. The operating rate in north China remained at a high level, while some southern producers planned to resume production, potentially resulting in a slight rise in ferrochrome production. However, with limited spot inventory among ferrochrome producers, there was a noticeable shortage in the retail market, and many producers were reluctant to sell, maintaining firm quotations that continued to rise, awaiting follow-up transactions.

In terms of raw materials, on August 25, 2025, the spot price for 40-42% South African powder at Tianjin Port was 55.5-56 yuan/mtu; for 40-42% South African raw ore, it was 50-52 yuan/mtu; for 46-48% Zimbabwean chrome concentrate, it was 57.5-59 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 0.25-1 yuan/mtu MoM from the previous trading day. In the futures market, 40-42% South African powder was quoted at $269-275/mt; 48-50% Zimbabwean chrome concentrate was quoted at $335-345/mt, remaining unchanged MoM.

The chrome ore market showed a strong sentiment for price increases during the day. The rise in steel mill tender prices bolstered market confidence, and inquiry activity strengthened, awaiting feedback from actual transactions. On one hand, ferrochrome producers, optimistic about future prospects, had a high level of production enthusiasm, leading to an increase in ferrochrome production and a rigid demand for chrome ore, which pushed chrome ore prices to rise slowly. On the other hand, chrome ore shipments consistently remained at a high level, with subsequent supply being quite robust, which to some extent curbed the upward potential of chrome ore prices. Additionally, influenced by the expectation of rising chrome ore prices increasing production costs, recent ferrochrome producers mostly completed their raw material stocking in advance. Therefore, buyers' acceptance of further increases in chrome ore prices was rather average, with no actual transactions concluded yet. It is expected that the chrome ore market will mainly operate steadily with a positive trend in the short term.