[SMM Chrome Daily Review] Tight Ferrochrome Supply Continues to Support Prices; Chrome Ore Struggles to Rise, Remains Stable in the Short Term

On September 24, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,500-8,600 yuan/mt (50% metal content); in Sichuan and north-west China, the ex-factory price of high-carbon ferrochrome was 8,500-8,600 yuan/mt (50% metal content); in east China, the offer price for high-carbon ferrochrome 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 MoM from the previous trading day.

During the day, the ferrochrome market operated steadily. The Tsingshan tender rose by 200 yuan, in line with market expectations. However, the stainless steel market has been in the doldrums recently, and downstream acceptance of high-priced cargo is average, with limited inquiry and purchase demand. Most are waiting for other steel mills to announce prices. However, with a significant reduction in ferrochrome imports, domestic producers are highly motivated to produce due to good profits, and ferrochrome production continues to rise. Overall supply and demand are in a tight balance, supporting stable ferrochrome prices. Producer offers are concentrated in the range of 8,500-8,600 yuan/mt (50% metal content).

Raw material side, on September 24, 2025, the spot offer for 40-42% South African fines at Tianjin Port was 56.5-58 yuan/mtu; the offer for 40-42% South African raw ore was 51.5-53 yuan/mtu; the offer for 46-48% Zimbabwean chrome concentrate was 58-59 yuan/mtu; the offer for 48-50% Zimbabwean chrome concentrate ore was 59-62 yuan/mtu; the offer for 40-42% Turkish chrome lump ore was 60-61 yuan/mtu; the offer for 46-48% Turkish chrome concentrate was 66-67 yuan/mtu, flat MoM from the previous trading day. Futures side, the offer for 40-42% South African fines was $280-284/mt; the offer for 48-50% Zimbabwean chrome concentrate was $345-355/mt, flat MoM from the previous trading day.

During the day, the chrome ore market operated steadily. The 200-yuan increase in the October tender had limited boosting effect on the ore side, as ferrochrome producers still mainly consume their existing inventory. Recently, low-priced chrome ore futures have arrived at ports successively, and most have completed pre-holiday stockpiling, resulting in limited demand for spot chrome ore currently. Inquiry and purchase activity is low, with many counteroffers. In addition, chrome ore imports in August reached 2.0994 million mt, a record high. There may be concentrated arrivals subsequently. With supply continuing to increase and demand performance weak, the chrome ore surplus situation is gradually becoming prominent. Traders' inventory pressure is increasing, and prices struggle to rise. Futures side, the new round of transaction price for South African chrome ore in the overseas market was $280/mt, with a ferrochrome-to-ore ratio of 1.3, transaction volume of 40,000 mt, and shipment date before November 15. Overseas mine owners have a strong willingness to sell, while domestic sentiment is wait-and-see. Actual transactions are average. Chrome ore prices are expected to operate steadily in the short term.