[SMM Chrome Daily Review] Ferrochrome Market Rally Slows Down, Chrome Ore Prices Remain Stable with Some Gains

On September 11, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,400-8,500 yuan/mt (50% metal content); in Sichuan and north-west China, the ex-factory price was 8,450-8,550 yuan/mt (50% metal content); in east China, the offer price was 8,500-8,600 yuan/mt (50% metal content); the offer price for South African high-carbon ferrochrome was 8,000-8,200 yuan/mt (50% metal content); the offer price for Kazakh high-carbon ferrochrome was 9,000-9,300 yuan/mt (50% metal content), flat WoW.

During the day, the ferrochrome market held up well, with the upward trend in retail prices slowing down. Downstream acceptance of high-priced goods was limited, and the inquiry and transaction atmosphere was mediocre recently. Producer offers were concentrated in the range of 8,450-8,600 yuan/mt (50% metal content). On the supply and demand side, ferrochrome maintained tight supply, with limited low-priced sources in the market. Meanwhile, the downstream market entered the peak consumption season, with increasing demand for chrome. Many steel mills recently entered tenders, and tender prices generally rose, supporting market confidence and optimistic expectations. Cost side, steadily rising chrome ore prices pushed up ferrochrome costs, fluctuating at highs and supporting upward price movements. A new round of South African overseas offers rose by $4, driving a slight adjustment in spot ore prices. The cost of ore for ferrochrome smelting increased, significantly exceeding the downward adjustment in coke prices. The ferrochrome market is expected to maintain a strong performance in the short term.

Raw material side, on September 11, 2025, the spot offer for 40-42% South African powder at Tianjin Port was 56.5-58 yuan/mtu; 40-42% South African raw ore was 51.5-53 yuan/mtu; 46-48% Zimbabwean chrome concentrate was 58-59 yuan/mtu; 48-50% Zimbabwean chrome concentrate was 59-62 yuan/mtu; 40-42% Turkish chrome lump ore was 60-61 yuan/mtu; 46-48% Turkish chrome concentrate was 66-67 yuan/mtu, up 0.5 yuan/mtu WoW. In the futures market, 40-42% South African powder was offered at $278-280/mt; 48-50% Zimbabwean chrome concentrate was offered at $345-355/mt, flat WoW.

During the day, sentiment in the chrome ore market strengthened, with traders showing increased willingness to raise prices, though constrained by demand. Actual transactions remained to be followed up. Futures increases drove spot ore offers higher, but considering that ferrochrome producers had previously stockpiled, they mainly consumed their own inventory recently, with limited inquiry and purchase sentiment. Additionally, during the traffic restriction period at Tianjin Port, many producers signed orders to be picked up after the restrictions were lifted, so recent purchase activity was generally moderate. However, transportation capacity remained tight, and freight rates stayed high. In the futures market, mid-week overseas offers for South African powder rose by another $4, maintaining a steady upward trend, mainly due to potential price pressure from continued high ore supply. Considering that ferrochrome planned production continues to increase, creating rigid demand for chrome ore, the chrome ore market is expected to remain strong and stable in the short term.