[SMM Chrome Daily Review] Ferrochrome Prices Continue to Rise, Chrome Ore Market Stabilizes and Improves

On August 26, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,100-8,300 yuan/mt (50% metal content); in Sichuan and north-west China, the ex-factory price of high-carbon ferrochrome was 8,100-8,300 yuan/mt (50% metal content); in east China, the quoted price of high-carbon ferrochrome was 8,200-8,400 yuan/mt (50% metal content); in South Africa, the quoted price of high-carbon ferrochrome was 7,900-8,000 yuan/mt (50% metal content); in Kazakhstan, the quoted price of high-carbon ferrochrome was 8,800-9,000 yuan/mt (50% metal content), up 100 yuan/mt (50% metal content) MoM from the previous trading day.

The ferrochrome market held up well during the day. After the price increase of 300 yuan in the September steel mill tender was implemented, confidence in the chrome market was sufficiently boosted, and the retail price of ferrochrome was subsequently raised to 8,200-8,300 yuan/mt (50% metal content). Considering the profit recovery of ferrochrome producers and their high production enthusiasm, it is expected that the production of ferrochrome will rise slightly. However, the current spot inventory of ferrochrome remains tight, with limited tradable volumes. Producers have a strong sentiment of reluctance to sell, and their determination to hold prices firm remains unwavering. Additionally, as the "September-October peak season" approaches, the downstream stainless steel market is gradually releasing its procurement demand for ferrochrome. Producers are generally optimistic about the future price of ferrochrome, and it is expected that the ferrochrome market will continue to hold up well.

Regarding raw materials, on August 25, 2025, the spot price of 40-42% South African chrome ore fines at Tianjin Port was 55.5-56 yuan/mtu; the price of 40-42% South African raw ore was 50-52 yuan/mtu; the price of 46-48% Zimbabwean chrome concentrate was 57.5-59 yuan/mtu; the price of 48-50% Zimbabwean chrome concentrate ore was 59-61 yuan/mtu; the price of 40-42% Turkish chrome lump ore was 60-61 yuan/mtu, unchanged MoM from the previous trading day. In the futures market, the quoted price of 40-42% South African chrome ore fines was $269-275/mt; the quoted price of 48-50% Zimbabwean chrome concentrate was $335-345/mt, unchanged MoM.

The chrome ore market performed well during the day, with many spot quotes showing an inclination to rise, awaiting new futures offers. The high-end quote for 40-42% South African chrome ore fines reached 57 yuan/mtu, South African raw ore rose to +11, and a quote of 61 yuan/mtu appeared for 48-50% Zimbabwean chrome concentrate ore. Although the implementation of the steel mill tender price increase has boosted market confidence, the current atmosphere of inquiries and purchases for chrome ore is somewhat subdued. On the one hand, ferrochrome producers have relatively sufficient inventories of raw chrome ore and mainly seek low-priced supplies, showing a relatively moderate acceptance of chrome ore price increases; on the other hand, Tianjin Port issued an announcement on joint prevention and control measures for container collection and distribution vehicles during key periods, imposing certain restrictions on chrome ore transportation. However, ferrochrome producers have mostly completed their early stockpiling, and feedback indicates that the actual impact is limited. Therefore, recent actual transactions of chrome ore have remained stable, with weak short-term purchase demand. It is expected that the chrome ore market will mainly maintain a stable and positive development trend.