[SMM Chrome Daily Review] Limited Fluctuations in Ferrochrome Prices, Insufficient Confidence in the Chrome Ore Market

On December 2, 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, offers for high-carbon ferrochrome were 8,100-8,300 yuan/mt (50% metal content), flat MoM from the previous trading day. For imported ferrochrome, South African high-carbon ferrochrome was offered at 8,200-8,400 yuan/mt (50% metal content); Kazakh high-carbon ferrochrome was offered at 9,000-9,100 yuan/mt (50% metal content), down 50 yuan MoM from the previous trading day.

The ferrochrome market operated steadily during the day, with limited short-term price fluctuations. Current stainless steel production cuts are limited, and December steel tender prices edged down, with relatively objective profits stimulating ferrochrome producers to actively produce and fulfill long-term contract orders. Combined with low-priced imported ferrochrome, domestic ferrochrome production increased significantly, surpassing the historical peak. However, considering the impact of winter and the Chinese New Year holiday in January-February, downstream stainless steel production cuts are expected to intensify, potentially suppressing ferrochrome prices, and market expectations are not optimistic. In the short term, the ferrochrome market is expected to operate steadily.

Raw material side, on December 2, 2025, spot 40-42% South African concentrate at Tianjin Port was offered at 51.5-52 yuan/mtu; 40-42% South African raw ore was offered at 47.5-49 yuan/mtu; 46-48% Zimbabwean chrome concentrate powder was offered at 52-53 yuan/mtu; 48-50% Zimbabwean chrome concentrate was offered at 53-54 yuan/mtu; 40-42% Turkish chrome lump ore was offered at 56-57.5 yuan/mtu; 46-48% Turkish chrome concentrate was offered at 59-60 yuan/mtu, down 0.5 yuan/mtu MoM from the previous trading day. For futures, the new round offer for 40-42% South African concentrate fell to $263/mt.

The chrome ore market was in the doldrums during the day, with weak trading activity and participants lacking confidence, mostly bearish. Ferrochrome producers mostly replenished raw material inventory by self-procuring futures chrome ore, resulting in limited purchasing demand for spot cargo. Although futures prices fell again, high port inventory pressure persisted, market feedback was average, and shipment conditions showed no improvement; chrome ore prices are expected to still have some downside room. For 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 is expected to keep the chrome ore market in the doldrums in the short term.