[SMM Chromium Daily Review] Market Operates Steadily, Wait-and-See Sentiment Gradually Emerges

On September 15, 2025, the ex-factory price for high-carbon ferrochrome in Inner Mongolia was 8,450-8,550 yuan/mt (50% metal content); in Sichuan and north-west China, it was 8,500-8,600 yuan/mt (50% metal content); in east China, the quotation was 8,500-8,600 yuan/mt (50% metal content); for South African high-carbon ferrochrome, the quotation was 8,000-8,200 yuan/mt (50% metal content); and for Kazakhstan high-carbon ferrochrome, the quotation was 9,000-9,300 yuan/mt (50% metal content), flat MoM from the previous trading day.

During the day, the ferrochrome market operated strongly and steadily. Retail prices rose to highs and then stabilized, with limited room for further increases, and quotations concentrated at 8,500-8,600 yuan/mt (50% metal content). Downstream buyers were cautious, waiting for new steel mill tender prices as guidance. Cost side, the second round of coke price cuts was implemented during the day, reducing coke costs; after the traffic restrictions were lifted, chrome ore transportation costs gradually decreased, returning to normal, slightly reducing ore costs. However, chrome ore prices remained stable, and overall, ferrochrome production costs fluctuated at highs, providing some support to prices. Supply and demand side, with high planned production, downstream steel mills had more purchasing needs recently. Ferrochrome producers had mostly completed their previous orders, currently holding tight spot cargo, and the market's bullish sentiment remained strong, with factories refusing to budge on prices and traders holding back from selling. Both cost and supply and demand factors supported ferrochrome prices to remain steady at highs, and it is expected that the ferrochrome market will maintain a strong and steady operation in the short term.

In terms of raw materials, on September 15, 2025, the spot price for 40-42% South African powder at Tianjin Port was 56.5-58 yuan/mtu; 40-42% South African raw ore was quoted at 51.5-53 yuan/mtu; 46-48% Zimbabwean chrome concentrate was quoted at 58-59 yuan/mtu; 48-50% Zimbabwean chrome concentrate ore was quoted at 59-62 yuan/mtu; 40-42% Turkish chrome lump ore was quoted at 60-61 yuan/mtu, and 46-48% Turkish chrome concentrate ore was quoted at 66-67 yuan/mtu, flat MoM from the previous trading day. 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 MoM from the previous trading day.

At the beginning of the week, the chrome ore market mainly operated steadily, with average inquiry performance and mediocre transaction atmosphere. Spot-wise, most ferrochrome producers had already completed stockpiling of raw material chrome ore and were now mainly consuming their own inventory. Meanwhile, low-priced chrome ore around $265/mt had arrived, allowing producers who purchased low-cost futures to restock, thus limiting the demand for spot cargo, and overall, the willingness to inquire and purchase was average. The overall market for South African powder saw limited fluctuations; lump ore, due to its cost-effectiveness, became a recent hot topic; and Zimbabwean concentrate, supported by increased domestic demand and the peak export season in Africa, saw prices fluctuate at highs. In the futures market, last week, the overseas offers for South African 40-42% chrome ore rose by another $4 to $279/mt. The upward trend remained mild, mainly due to the potential price pressure from sustained high supply of chrome ore. However, the sharp rise in ferrochrome has prompted most traders to be optimistic about the market outlook. Coupled with the continuous increase in planned production of ferrochrome, which creates rigid demand for chrome ore, the chrome ore market is expected to remain strong and stable in the short term.