[SMM Chrome Daily Review] Ferrochrome Prices Continue to Rise, Chrome Ore Purchase Activity Remains Stable

On September 2, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia stood at 8,300-8,450 yuan/mt (50% metal content); in Sichuan and north-west China, the ex-factory price ranged at 8,300-8,500 yuan/mt (50% metal content); east China quotations were at 8,400-8,500 yuan/mt (50% metal content); South African offers were at 7,900-8,000 yuan/mt (50% metal content); Kazakhstan quotations rose to 8,900-9,100 yuan/mt (50% metal content), up 50-75 yuan/mt (50% metal content) MoM from the previous trading day.

The ferrochrome market maintained a firm and stable trend intraday, with retail quotations rising again amid strong bullish sentiment among producers. Tight supply and recovering demand continued to support price increases. South Africa's zero direct exports of high-carbon ferrochrome to China indicated a significant decline in overseas supply during August-September. Coupled with the steel mill tender price exceeding expectations and expanding profit margins, domestic producers were stimulated to boost production. Driven by the September-October peak season, downstream stainless steel planned production rebounded to high levels, strengthening procurement demand for ferrochrome, with frequent stockpiling and restocking activities. Additionally, most ferrochrome producers prioritized fulfilling long-term contracts and previous orders, with some having orders scheduled until mid-to-late September. Tight spot inventory and limited retail availability fueled reluctance to sell, creating a tight balance in supply and demand that supported steady market improvement.

Raw material side, on September 2, 2025, spot 40-42% South African fines at Tianjin Port were quoted at 56-57.5 yuan/mtu; 40-42% South African raw ore at 51-53 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 lump ore at 60-61 yuan/mtu; and 46-48% Turkish chrome concentrate at 64-65 yuan/mtu, up 0.5 yuan/mtu MoM from the previous trading day. In the futures market, 40-42% South African fines were offered at $275-278/mt, while 48-50% Zimbabwean chrome concentrate rose to $340-350/mt, up $2 MoM.

The chrome ore market remained mediocre intraday, with concentrated transactions expected post-key periods. Spot Zimbabwean fines saw price hikes and transactions amid rising demand from low- and micro-carbon ferrochrome price increases. High-quality South African raw ore, facing tight supply, rose to the +11-12 range. However, most producers had completed raw material stocking and focused on just-in-time procurement, while port controls disrupted ore transportation. Current activities centered on inquiries and negotiations, with purchases and cargo pick-up deferred until traffic restrictions lifted. Futures side, a major South African mine's 40-42% chrome concentrate at Tianjin Port was offered at $275/mt for new rounds, with a chrome-to-iron ratio of 1.3, up $2 MoM from August 27, for shipments before late October and procurement volumes optional between 10,000-15,000 mt. Given that chrome ore shipments remain at high levels, while production cuts in overseas ferrochrome have driven an increase in chrome ore exports, the subsequent supply surplus of chrome ore has somewhat restrained the rise in ore prices. Traders are more inclined to take on floating cargo that can arrive at ports promptly, leading to a relatively mild upward adjustment in futures prices. The chrome ore market is expected to maintain stable operations in the short term.