[SMM Chrome Daily Review] Ferrochrome Market Continues to Improve, Chrome Ore Prices Slightly Increased

On August 28, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,200-8,300 yuan/mt (50% metal content); in Sichuan and north-west China, the ex-factory price of high-carbon ferrochrome was 8,200-8,400 yuan/mt (50% metal content); in east China, the quotation for high-carbon ferrochrome was 8,300-8,400 yuan/mt (50% metal content); the quotation for South African high-carbon ferrochrome was 7,900-8,000 yuan/mt (50% metal content); the quotation for Kazakhstani high-carbon ferrochrome was 8,900-9,100 yuan/mt (50% metal content), up 50 yuan/mt (50% metal content) MoM from the previous trading day.

During the day, the ferrochrome market maintained an upward trend, with retail quotations continuing to rise. As the peak consumption season approaches, downstream inquiries have picked up, and ferrochrome procurement demand is gradually being released. At month-end, most iron plants were mainly focused on delivering long-term orders, with tight spot inventory. Some factories had orders signed until mid-to-late September, resulting in limited tradable volumes in the market, which further pushed up retail prices. Additionally, the production cost of ferrochrome fluctuated at highs, with a seventh round of coke price increases raising coking costs by 200 yuan, coupled with rising chrome ore prices, leading to increased ore cost pressures. Producers strongly refused to budge on prices, pushing quotations higher. The ferrochrome market is expected to continue to hold up well.

Raw material side, on August 28, 2025, the spot quotation for 40-42% South African powder at Tianjin Port was 56-57 yuan/mtu; the quotation for 40-42% South African raw ore was 50-53 yuan/mtu; the quotation for 46-48% Zimbabwean chrome concentrate powder was 58-59 yuan/mtu; the quotation for 48-50% Zimbabwean chrome concentrate ore was 59-62 yuan/mtu; the quotation for 40-42% Turkish chrome lump ore was 60-61 yuan/mtu, and the quotation for 46-48% Turkish chrome concentrate powder ore was 64-65 yuan/mtu, up 0.25-1 yuan/mtu MoM from the previous trading day. In the futures market, the quotation for 40-42% South African powder was $269-275/mt; the quotation for 48-50% Zimbabwean chrome concentrate powder was $340-350/mt, up $4-5/mt MoM.

During the day, the chrome ore market performed well, with both spot and futures prices rising, and market transaction activity remained stable. Factories generally had sufficient raw material inventories, and the traffic restrictions at Tianjin Port affected chrome ore transportation, thus recently, the pace of chrome ore inquiries and purchases has slowed down, with plans to resume purchasing after the key period. Additionally, due to the recent increase in low and micro-carbon ferrochrome prices and increased demand, inquiries and transaction prices for high-grade Zimbabwean chrome concentrate powder ore rose more significantly. The chrome ore market is expected to maintain a steady and positive development trend.