[Ferrochrome Market Stable, Chrome Ore Prices Continue to Fall]

On December 3, 2025, the ex-factory price for 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 material, offers for South African high-carbon ferrochrome were 8,200-8,400 yuan/mt (50% metal content); offers for Kazakh high-carbon ferrochrome were 9,000-9,100 yuan/mt (50% metal content), flat MoM from the previous trading day.

A price spread emerged between long-term contract and retail prices, with producers focusing on fulfilling long-term contract orders. The retail market performed sluggishly, making it difficult to clinch deals at highs. The ferrochrome market mainly operated steadily during the day. As the dry season officially began, electricity costs in south China rose significantly, leading to production cuts and halts at some high-carbon ferrochrome producers recently. However, considering that new capacity released in the north mostly reached normal production levels in December, ferrochrome production is expected to hover at highs, offsetting the impact. Downstream, stainless steel mills successively cut production, weakening demand for chrome. The ferrochrome supply is loosening, leading to pessimistic market expectations for future ferrochrome prices. Overseas, South African ferrochrome smelting operations are currently undergoing significant shutdowns. Major chrome companies, Glencore and Samancor, both plan to lay off employees. Glencore stated on Tuesday that it reached an agreement with South Africa's Eskom, planning to resume production at its subsidiary Lion ferrochrome smelter in February 2026, with an annual capacity of 720,000 mt. Overall, the recovery of ferrochrome still faces significant obstacles, requiring attention to subsequent power policies and the progress of the chrome ore export tax plan.

Raw material side, on December 3, 2025, spot offers for 40-42% South African fines at Tianjin Port were 50.5-51.5 yuan/mtu; offers for 40-42% South African raw ore were 47.5-48 yuan/mtu; offers for 46-48% Zimbabwean chrome concentrate powder were 51.5-52 yuan/mtu; offers for 48-50% Zimbabwean chrome concentrate ore were 52-53.5 yuan/mtu; offers for 40-42% Turkish chrome lump ore were 56-57.5 yuan/mtu; offers for 46-48% Turkish chrome concentrate powder were 59-60 yuan/mtu, down 0.75 yuan/mtu MoM from the previous trading day. For futures, the new round offer for 40-42% South African fines fell to $263/mt.

Spot chrome ore offers continued to decline, market pessimism intensified, and the market was mainly in the doldrums. Ferrochrome producers needed to digest their raw material inventory, limiting the release of procurement demand. Although futures prices fell, high port inventory pressure persisted, and market feedback was tepid, with no improvement in sales. The current significant inversion between chrome ore futures and spot prices led some traders to hold back from selling. Considering the limited actual sales of ferrochrome, the market expects further downside room for chrome ore prices. For futures, the transaction price for 40-42% South African fines was $263-265/mt, with lukewarm domestic feedback. However, some traders have started early stockpiling for 2026 and are purchasing in small quantities in stages. In addition, the recent severe port congestion at Beira Port in Mozambique has restricted shipments, leading to a significant increase in freight costs for chrome ore from Zimbabwe and raising traders' purchase costs. Attention should be paid to the future supply situation of chrome ore from Zimbabwe.