[SMM Chrome Daily Review] Ferrochrome Market Operates Steadily, Chrome Ore Prices Decline Weakly

On November 27, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 7,950-8,100 yuan/mt (50% metal content); in Sichuan and north-west China, the ex-factory price of high-carbon ferrochrome was 8,000-8,150 yuan/mt (50% metal content); in east China, the offer price for high-carbon ferrochrome was 8,100-8,300 yuan/mt (50% metal content), flat MoM; for imported ferrochrome, the offer price for South African high-carbon ferrochrome was 8,200-8,400 yuan/mt (50% metal content); the offer price for Kazakh high-carbon ferrochrome was 9,100-9,200 yuan/mt (50% metal content), flat MoM.

The ferrochrome market remained in the doldrums with sluggish shipments and weak demand, and trading activity was moderate. Stainless steel futures continued to rise, driving a recovery in spot market transactions, with many steel mills starting to inquire and purchase. However, affected by the year-end off-season and certain pessimistic expectations, the release of downstream purchase demand still requires some time. On the supply side, domestic ferrochrome producers actively maintained production driven by profits, with new capacity releases in the north effectively making up for the supply gap caused by production cuts in the south and low import volumes. Overall ferrochrome production continued to fluctuate at highs. Supply and demand maintained a tight balance, coupled with continuously declining chrome ore prices and loosening cost support. The ferrochrome price is expected to remain in the doldrums in the short term.

Raw material side, on November 27, 2025, the spot offer for 40-42% South African fines at Tianjin Port was 51.5-52 yuan/mtu; the offer for 40-42% South African raw ore was 48-49 yuan/mtu; the offer for 46-48% Zimbabwean chrome concentrate was 52-53 yuan/mtu; the offer for 48-50% Zimbabwean chrome concentrate was 53-54 yuan/mtu; the offer for 40-42% Turkish chrome lump ore was 57-59 yuan/mtu; the offer for 46-48% Turkish chrome concentrate was 60-61 yuan/mtu, down 0.5-1.5 yuan/mtu MoM. For futures, the offer for 40-42% South African fines was stable at $270-272/mt.

The chrome ore market continued to weaken, with spot offers declining again and the spread between futures and spot prices widening. Ferrochrome producers primarily consumed their own raw material inventories. Although inquiry activity increased, the counteroffer prices were low, leading to negotiations between parties. Meanwhile, constrained by high port inventory pressure, chrome ore traders slowly and continuously lowered their offers. The phenomenon of futures prices being lower than spot prices became prominent, market sentiment was not optimistic, and there were bearish expectations for the future market. Zimbabwean chrome ore offers were close to South African fines, and inquiries saw some recovery due to cost advantages; Turkish chrome concentrate prices also showed some softening. On the futures side, the market awaited the new round of overseas market offers from the main South African fines mine, with expectations for a flat or slightly lower price. Although ferrochrome production showed no significant decrease and steel mill tender prices were better than expected, the chrome ore market currently faces the dilemma of creeping price declines and weak demand. Therefore, purchase willingness for futures is moderate, transactions are limited, and the chrome ore market is expected to maintain a weak and stable operating trend in the short term.