[SMM Chrome Daily Review] Ferrochrome Market Sentiment Remains Bullish, Chrome Ore Inquiry and Purchase Gradually Resume

On September 4, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,350-8,500 yuan/mt (50% metal content); in Sichuan and north-west China, the ex-factory price was 8,400-8,500 yuan/mt (50% metal content); in east China, the offer price was 8,400-8,500 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 50 yuan/mt (50% metal content) MoM from the previous trading day.

The ferrochrome market maintained an upward trend during the day, with strong support from high operating costs and tightening supply expectations. The seventh round of coke price increases raised coking costs by over 200 yuan, while rising chrome ore prices further increased raw material costs, intensifying production pressure for ferrochrome smelters. Prices remained at a relatively high level, reinforcing producers' resolve to hold firm on prices. Meanwhile, tight spot ferrochrome supply gradually became evident in the market, as most domestic producers' orders were booked until late September or October, leaving extremely limited retail tradable volumes. Additionally, ferrochrome imports are expected to decline significantly, with Glencore recently announcing plans to cut capacity at its Lion ferrochrome smelter by half (720,000 mt/year) and implement workforce reductions at other smelters. On the stainless steel side, production continued to rise amid peak consumption season, while steel mills faced tight raw material inventories, driving stocking demand for ferrochrome. These factors jointly pushed ferrochrome prices higher, with the market expected to remain strong in the short term.

On the raw material side, September 4, 2025 saw spot 40-42% South African fines at Tianjin Port quoted at 56-57.5 yuan/mtu; 40-42% South African raw ore at 51.5-53 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. In the futures market, 40-42% South African fines were offered at $275-278/mt, while 48-50% Zimbabwean chrome concentrate was offered at $340-350/mt, also unchanged MoM.

Chrome ore market inquiries showed signs of recovery during the day, as Tianjin Port's traffic restrictions were about to be lifted, easing logistics bottlenecks and potentially reducing freight costs. Ferrochrome producers actively purchased ore to restock according to production schedules, boosting spot transaction activity. With ferrochrome output expected to rise further in September alongside production resumptions at some plants, chrome ore demand remained well-supported, strengthening traders' bullish sentiment and price hike expectations. Recently, 44-46% low-grade Zimbabwean fines circulated in the market but proved less cost-effective for high-carbon ferrochrome production due to limited supply, while failing to meet standards for low- and micro-carbon ferrochrome, resulting in sluggish sales. However, high-grade Zimbabwean ore witnessed active transactions, driven by the price increase of low- and micro-carbon ferrochrome. In the futures market, overseas miners' offers maintained a gradual upward trend with limited increments. The rise was largely constrained by high chrome ore shipment volumes and supply, while overseas ferrochrome production cuts boosted chrome ore exports. The subsequent supply surplus is expected to partially curb the upward momentum of ore prices, with long-term expectations remaining highly uncertain, prompting traders to adopt a cautious approach to purchases. The chrome ore market is projected to operate steadily with a slight upward bias in the short term.