[SMM Chrome Daily Review] Ferrochrome Market Continues to Rise, Chrome Ore Market Mostly in Wait-and-See Mode

On September 1, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,200-8,400 yuan/mt (50% metal content); in Sichuan and north-west China, the ex-factory price was 8,300-8,400 yuan/mt (50% metal content); in east China, the offer price was 8,350-8,400 yuan/mt (50% metal content); the offer price for South African high-carbon ferrochrome was 7,900-8,000 yuan/mt (50% metal content); the offer price for Kazakh high-carbon ferrochrome was 8,900-9,100 yuan/mt (50% metal content), up 25 yuan/mt (50% metal content) MoM from the previous trading day.

The ferrochrome market remained firm with rising offers, and producers maintained strong confidence, mostly optimistic about future trends. Entering the peak consumption season in September, downstream stainless steel continued destocking, with overall conditions improving. Actual production rebounded significantly, and further output increases are expected, gradually releasing ferrochrome procurement demand. Meanwhile, overseas ferrochrome supply is tight. South African customs data showed July ferrochrome exports totaled 121,500 mt, down 14.9% MoM and 61.0% YoY. Exports to China were zero. Based on January-February shipping schedules, imports in August-September are expected to decline notably, creating a projected supply gap that will support further price increases. Additionally, most ferrochrome producers are currently fulfilling long-term contracts and previous orders, with some having orders booked until mid-to-late September. Spot inventories are tight, with limited retail supply in the market and strong reluctance to sell. The ferrochrome market is expected to maintain steady growth.

Raw material side, on September 1, 2025, spot 40-42% South African fines at Tianjin Port were offered at 56-57.5 yuan/mtu; 40-42% South African raw ore at 50-53 yuan/mtu; 46-48% Zimbabwean chrome concentrate at 58-59 yuan/mtu; 48-50% Zimbabwean chrome concentrate at 59-62 yuan/mtu; 40-42% Turkish chrome lump ore at 60-61 yuan/mtu; and 46-48% Turkish chrome concentrate at 64-65 yuan/mtu, flat MoM from the previous trading day. For futures, 40-42% South African fines were offered at $269-275/mt, and 48-50% Zimbabwean chrome concentrate at $340-350/mt, also flat MoM.

The chrome ore market operated steadily, with most participants waiting to resume purchases after key periods. On one hand, transportation constraints somewhat affected producer procurement, and with raw material stocking mostly completed earlier, recent inquiries remained relatively stable. On the other hand, chrome ore shipments stayed high, while overseas ferrochrome production cuts boosted ore exports. Subsequent ore supply surplus may partially curb price increases, leading traders to prefer readily available floating cargo over futures. However, significant price rises in low-carbon ferrochrome recently have driven up demand for high-grade Zimbabwean chrome concentrate, pushing offers higher. The planned production of ferrochrome continued to rise in September, supporting the purchase demand for chrome ore. The chrome ore market is expected to remain stable in the short term, with traders maintaining an optimistic outlook.