[SMM Chrome Daily Review] Ferrochrome Market Remains Stable, Chrome Ore Prices Trend Weaker

On December 1, 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 was 8,000-8,150 yuan/mt (50% metal content); in east China, the offer price was 8,100-8,300 yuan/mt (50% metal content), flat MoM from the previous trading day. 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 from the previous trading day.

The ferrochrome market operated steadily during the day, with no adjustments to offers. Limited production cuts in downstream stainless steel, coupled with the supply gap caused by low-priced imported ferrochrome, provided rigid support for the procurement demand for domestic ferrochrome. Currently, a divergence exists between spot retail and long-term contracts; producers actively fulfilled orders as long-term contracts offered higher profit margins, while spot market transactions were sluggish, with general purchase willingness from downstream markets. The ferrochrome market is expected to operate steadily in the short term. However, in the long run, production cuts triggered by the sluggish stainless steel market, combined with growing ferrochrome production, may push the ferrochrome supply towards a surplus, putting downward pressure on prices.

Raw material side, on December 1, 2025, the spot offer for 40-42% South African concentrate at Tianjin port was 51.5-52 yuan/mtu; the offer for 40-42% South African raw ore was 47.5-49 yuan/mtu; the offer for 46-48% Zimbabwean chrome concentrate powder 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 56-58 yuan/mtu; the offer for 46-48% Turkish chrome concentrate powder was 59.5-60.5 yuan/mtu, all flat MoM from the previous trading day. In the futures market, the new round offer for 40-42% South African concentrate fell to $263/mt.

At the beginning of the week, trading activity in the chrome ore market was sluggish. Although offers saw no adjustments, participants lacked confidence and were mostly bearish. Despite chrome ore production reaching a historical peak, producers still held certain raw material inventory, leading to a slow procurement pace and limited demand release. Furthermore, port inventories remained high, highlighting the supply-demand imbalance, and traders faced increasing pressure to sell, suppressing chrome ore offers downward. Brazilian concentrate supplies were dispersed, and recent port arrivals were substantial, leading to significant price declines; their prominent cost advantage squeezed the pricing space for South African concentrate offers; mainstream Turkish concentrate offers showed flexibility and followed the downward trend. In futures, the mainstream mine offer for 40-42% South African concentrate was lowered by $7 to $263/mt. Considering South Africa's total chrome ore exports in October reached 2.4013 million mt, up 2.53% MoM and 25.23% YoY, the oversupply impact suggests the chrome ore market will likely operate in the doldrums in the short term.