[SMM Chromium Daily Review] Transactions Have Not Improved, Market in the Doldrums

On November 5, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,150-8,200 yuan/mt (50% metal content); in Sichuan and north-west China, the ex-factory price was 8,200-8,250 yuan/mt (50% metal content); in east China, offers for high-carbon ferrochrome were 8,250-8,400 yuan/mt (50% metal content), flat MoM. For imported material, offers for South African high-carbon ferrochrome were 8,100-8,400 yuan/mt (50% metal content); offers for Kazakh high-carbon ferrochrome were 9,100-9,400 yuan/mt (50% metal content), flat MoM.

The ferrochrome market remained in the doldrums during the day, with inquiries and purchases showing no significant improvement. Demand side, the impact of production cuts at stainless steel mills, coupled with high levels of ferrochrome production on the supply side, alleviated the previous tight supply situation, exerting some downward pressure on ferrochrome prices. Additionally, cost side, the gradual decline in chrome ore prices pushed down production costs for ferrochrome, weakening support for prices. The ferrochrome market is expected to remain predominantly weak in the short term.

Raw material side, on November 5, 2025, spot offers for 40-42% South African concentrate at Tianjin Port were 54.5-55 yuan/mtu; offers for 40-42% South African raw ore were 48.5-49.5 yuan/mtu; offers for 46-48% Zimbabwean chrome concentrate were 55-56 yuan/mtu; offers for 48-50% Zimbabwean chrome concentrate were 56.5-58 yuan/mtu; offers for 40-42% Turkish chrome lump ore were 58.5-60 yuan/mtu; offers for 46-48% Turkish chrome concentrate were 65-66 yuan/mtu, down 0.25 yuan/mtu MoM. For futures, offers for 40-42% South African concentrate were $279-282/mt; offers for 48-50% Zimbabwean chrome concentrate were $340-350/mt, flat MoM.

The chrome ore market maintained a mediocre performance during the day, with limited inquiry and transaction activity. Buyers, with relatively sufficient raw material inventory, slowed their procurement pace and pressed prices down to below 54 yuan/mtu in counteroffers. Sellers, affected by high and fluctuating port inventory, faced increased pressure to sell and mostly lowered their offers. However, as spot prices gradually approach the cost line, traders found it difficult to accept the price pressure from ferrochrome producers in the short term, leading to a current market dynamic characterized by a tug-of-war between sellers and buyers. Furthermore, the price spread between Zimbabwean chrome concentrate and South African concentrate has narrowed recently, making the Zimbabwean material relatively more economical and attracting higher inquiry interest. Futures side, the market primarily awaited the new round of offers from major overseas mines for South African 40-42% chrome concentrate. While large mines kept their offers unchanged, some small and medium-sized mines had already offered at $280/mt. With futures and spot prices gradually converging, coupled with South African chrome ore exports reaching record highs and subsequent supply expected to continue increasing, there is a possibility that futures offers may soften. The chrome ore market is expected to be generally stable with a slight fall in the short term.