[SMM Chrome Daily Review] Ferrochrome Market Operates Strongly and Steadily, Chrome Ore Inquiry Atmosphere Mediocre

On September 16, 2025, the ex-factory price of 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 for high-carbon ferrochrome 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.

The ferrochrome market operated strongly and steadily during the day, with retail prices holding steady at highs and actual transactions gradually following. The tender prices of major steel mills were all raised, supporting the market's bullish sentiment. Cost side, the spot chrome ore saw limited increases, mainly maintaining a stable trend, coupled with a decrease in freight and coke price cut, the immediate smelting cost of ferrochrome pulled back slightly before stabilizing, keeping producers in a profitable state and maintaining high production enthusiasm. On the supply and demand side, under high planned production, downstream steel mills recently released more purchasing needs, while most ferrochrome producers had completed the delivery of previous orders, currently holding tight spot supplies, leading to an unrelenting bullish sentiment in the market. Producers mainly refused to budge on prices, and traders mostly held onto their stocks, waiting to sell after future price increases. It is expected that ferrochrome prices will mainly fluctuate at highs, awaiting the announcement of the tender prices by mainstream steel mills in October.

In terms of raw materials, on September 16, 2025, the spot price of 40-42% South African concentrate 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 concentrate was offered at $278-280/mt; 48-50% Zimbabwean chrome concentrate was offered at $345-355/mt, flat MoM from the previous trading day.

During the day, the chrome ore market operated steadily, with insufficient momentum for spot price increases, and a mediocre inquiry atmosphere, resulting in general market activity, as many awaited new overseas market quotations for futures and guidance from the October steel mill tenders. Considering that most ferrochrome producers had already completed stockpiling of raw material chrome ore, they were now mainly consuming their own inventories. Meanwhile, there was a trend of inventory buildup at ports, increasing the pressure on traders to hold stocks. Recently, low-priced chrome ore around $265/mt arrived in bulk, allowing manufacturers who purchased low-cost futures to restock raw materials, thus limiting the demand for spot goods, and overall, the willingness to inquire and purchase was rather mediocre. The overall market for South African concentrate showed limited fluctuations; lump ore became a hot topic due to its cost-effectiveness; and Zimbabwean concentrate, supported by increased domestic demand and the peak export season in Africa, saw prices fluctuate at highs. At the futures level, last week, the overseas market 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 continued high supply of chrome ore. However, the sharp rise in ferrochrome has stimulated 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 operate with strong stability, and short-term price fluctuations are likely to be limited.