[SMM Chrome Daily Review] Ferrochrome Market Remains Stable, Chrome Ore Expectations Poor

On December 4, 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; 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.

With the official onset of the dry season, electricity costs in south China have increased significantly, leading to production cuts or halts at some high-carbon ferrochrome producers recently. However, newly added capacity released earlier is expected to reach normal production levels concentrated in December. Offsetting each other, ferrochrome production is expected to hover at highs. Meanwhile, production cuts at downstream stainless steel mills are basically certain, leading to some changes in the supply-demand pattern. Market participants hold pessimistic expectations for the future market. Considering the current price spread between long-term contracts and spot sales, ferrochrome producers are actively fulfilling long-term contract orders, while retail sales remain relatively difficult. Offers remain unchanged for now, and the ferrochrome market is operating steadily.

Raw material side, on December 4, 2025, spot offers for 40-42% South African concentrate 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 51-52 yuan/mtu; offers for 48-50% Zimbabwean chrome concentrate were 52-53 yuan/mtu; offers for 40-42% Turkish chrome lump ore were 56-57.5 yuan/mtu; offers for 46-48% Turkish chrome concentrate were 59-60 yuan/mtu, down 0.75 yuan/mtu MoM; for futures, offers for 40-42% South African concentrate were $263-265/mt.

The chrome ore market is in the doldrums, with spot offers continuing to decline and market pessimism spreading. Purchase demand from ferrochrome producers is limited, coupled with high port inventory levels, increasing sales pressure and keeping prices under pressure. With ample supply of South African concentrate, inquiry activity is mediocre, and the economic advantage of Zimbabwean concentrate is also putting some pressure on prices. Demand for lump ore procurement has become more noticeable, but actual transactions have not yet materialized. For futures, the transaction price for 40-42% South African concentrate was $263-265/mt, with the market mostly watching for the new round of offers. However, some traders are making preliminary stockpiling for 2026, purchasing in small batches and stages, leading to relatively concentrated futures transactions recently. Additionally, severe port congestion at Mozambique's Beira Port recently has restricted shipments, causing a significant increase in freight costs for Zimbabwean chrome ore, raising traders' purchase costs. Subsequent supply of Zimbabwean chrome ore needs attention.