[SMM Chromium Daily Review] Steel Tender Settles Flat, Market Sentiment Remains Sluggish

On October 27, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,300-8,450 yuan/mt (50% metal content); in Sichuan and north-west China, the ex-factory price was 8,350-8,500 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), down 25 yuan/mtu MoM from the previous trading day. For imported ferrochrome, the offer price for South African high-carbon ferrochrome was 8,100-8,400 yuan/mt (50% metal content); the offer price for Kazakh high-carbon ferrochrome was 9,100-9,400 yuan/mt (50% metal content), flat MoM from the previous trading day.

The ferrochrome market continued in the doldrums during the day. Tsingshan announced its November tender price for high-carbon ferrochrome at 8,495 yuan/mt (50% metal content), unchanged from October, aligning with mainstream market expectations. However, the weak supply-demand fundamentals of stainless steel remain difficult to reverse. High planned production fails to provide significant support for ferrochrome demand. Downstream buyers remained cautious in purchasing, resulting in limited actual transactions. Furthermore, with multiple new capacity releases expected, the tight supply of ferrochrome may ease. As stainless steel enters the off-season and planned production decreases, demand for chrome is weakening, increasing pressure on ferrochrome producers. Simultaneously, declining chrome ore prices on the raw material side have loosened production costs, providing limited price support. Market participants generally hold a bearish outlook, expecting the ferrochrome market to remain in the doldrums in the short term.

Raw material side, on October 27, 2025, spot 40-42% South African fines at Tianjin Port were offered at 55-56 yuan/mtu; 40-42% South African raw ore at 50-51 yuan/mtu; 46-48% Zimbabwean chrome concentrate at 57-58 yuan/mtu; 48-50% Zimbabwean chrome concentrate at 58-59 yuan/mtu; 40-42% Turkish chrome lump ore at 59.5-60.5 yuan/mtu; and 46-48% Turkish chrome concentrate at 65-66 yuan/mtu, down 0.25 yuan/mtu MoM from the previous trading day. Futures side, 40-42% South African fines were offered at $280-284/mt; 48-50% Zimbabwean chrome concentrate was offered at $340-350/mt, flat MoM from the previous trading day.

At the beginning of the week, the chrome ore market remained sluggish. Constrained by port inventories fluctuating at highs and sufficient raw material inventories held by ferrochrome producers, sellers faced increased pressure to move material, but their bargaining power weakened. Buyer inquiries and purchases were average, with increased efforts to drive down prices through counteroffers. Considering recent arrivals were mostly priced at $270-275/mt, equivalent to about 54 yuan/mtu for spot material, high costs provided some support for chrome ore prices. Some traders showed reluctance to budge on prices. Spot chrome ore is expected to have limited further downside room. Futures side, the latest overseas market offer for 40-42% South African fines held steady at $282/mt; Zimbabwean overseas market offers saw limited declines. Domestic traders' purchase willingness was average, with close attention paid to news regarding South African chrome ore export taxes. Market opinions are divided on this matter. If the tariff policy is implemented, chrome ore prices may rise, but the downstream sector's ability to absorb and accept the increase remains to be seen. In the short term, chrome ore prices are expected to remain in the doldrums.