[SMM Chromium Daily Review] Awaiting Steel Tender Offers, Market Maintains Strong and Stable Operation

On September 17, 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, the ex-factory price was 8,500-8,600 yuan/mt (50% metal content); east China offers were 8,500-8,600 yuan/mt (50% metal content); South African high-carbon ferrochrome was offered at 8,000-8,200 yuan/mt (50% metal content); Kazakhstan high-carbon ferrochrome was offered at 9,000-9,300 yuan/mt (50% metal content), flat MoM from the previous trading day.

During the day, the ferrochrome market remained strong and stable, with overall trading activity pulling back from previous levels, but robust downstream demand supported prices fluctuating at highs. Producer offers were maintained in the range of 8,500-8,600 yuan/mt (50% metal content). Cost side, chrome ore spot prices rose slowly, coupled with normalized freight rates and two rounds of coke price cuts, overall production costs for ferrochrome remained stable. Producers were profitable, with high production enthusiasm, and planned production is expected to continue increasing, leading to higher future supply. Supply and demand side, downstream steel mills' high production schedules provide rigid demand support for ferrochrome, while significant reduction in overseas ferrochrome imports and producers fulfilling previous orders have led to tight spot supply, supporting producers' reluctance to budge on prices. Most traders held back sales, waiting for future price increases before releasing goods. Ferrochrome prices are expected to remain stable at high levels, awaiting the announcement of tender prices from mainstream steel mills in October.

Raw material side, on September 17, 2025, spot South African 40-42% concentrate at Tianjin Port was offered at 56.5-58 yuan/mtu; South African 40-42% raw ore was offered at 51.5-53 yuan/mtu; Zimbabwean 46-48% chrome concentrate powder was offered at 58-59 yuan/mtu; Zimbabwean 48-50% chrome concentrate was offered at 59-62 yuan/mtu; Turkish 40-42% chrome lumps were offered at 60-61 yuan/mtu; Turkish 46-48% chrome concentrate powder was offered at 66-67 yuan/mtu, flat MoM from the previous trading day. Futures side, South African 40-42% concentrate was offered at $278-280/mt; Zimbabwean 48-50% chrome concentrate powder was offered at $345-355/mt, flat MoM from the previous trading day.

During the day, the chrome ore market operated steadily, with inquiry enthusiasm somewhat diminished. With relatively sufficient raw material inventories, ferrochrome producers showed limited acceptance of high-priced chrome ore, and spot price increase momentum was insufficient. Most are waiting for guidance from the new round of overseas futures offers and October steel mill tender prices. However, driven by high ferrochrome production schedules and bullish expectations, chrome ore prices are expected to remain stable, with future stocking demand yet to be released. South African concentrate overall market fluctuations were limited; lumps became a recent market hot topic due to cost-performance advantages, with prices slightly rising. Futures side, last week, overseas offers for South African 40-42% chrome ore were raised by $4 to $279/mt, with 30,000 mt traded. Futures maintained a mild upward trend, primarily due to the potential price pressure from sustained high chrome ore supply. However, the sharp rise in ferrochrome has prompted most traders to remain optimistic about the market outlook. Coupled with the continuous increase in planned ferrochrome production, which creates rigid demand for chrome ore, the chrome ore market is expected to operate with strong stability, with limited short-term price fluctuations.