[SMM Chrome Weekly Review] Ferrochrome Market Remains Relatively Stable, Chrome Ore Prices Continue to Decline

On December 5, 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.

This week, the ferrochrome market operated steadily overall. The downstream stainless steel market showed some recovery, coupled with limited production cuts by steel mills, leading to steady progress in ferrochrome inquiries and transactions, with prices remaining relatively stable. Officially entering the dry season, electricity costs in south China increased significantly, prompting some high-carbon ferrochrome producers to cut or halt production recently. However, newly added capacity released earlier is expected to reach normal production levels concentrated in December. Offsetting each other, ferrochrome production is projected to hover at highs, with supply gradually becoming looser, posing a risk of price pressure later. Cost side, chrome ore prices continued to fall, leading to a decrease in the immediate smelting cost for ferrochrome, diminishing price support. Considering the current price spread between long-term contracts and spot sales, ferrochrome producers actively focused on fulfilling long-term contract orders, resulting in stable market operation.

Raw material side, on December 5, 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 46.5-48 yuan/mtu; offers for 46-48% Zimbabwean chrome concentrate 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 0.25 yuan/mtu MoM from the previous trading day. For futures, offers for 40-42% South African concentrate were $263-265/mt.

This week, the chrome ore market continued its weakness, with prices falling further, though the decline narrowed. Recent port arrivals were mostly high-priced futures chrome ore purchased earlier; with severe contango, many traders held back from selling. However, there were also low-price transactions due to clearing remaining stock. Demand side, ferrochrome producers gradually released purchase inquiries, increasing inquiry activity, but the pressure to drive down prices in counteroffers remained strong, leading to a limited overall rebound in transaction volume. With stable warehouse withdrawals, port arrivals of chrome ore decreased, and port inventory fell 8.3% WoW to 3.2814 million mt. Although inventory declined, due to weak market confidence, chrome ore prices still faced downward pressure. Futures side, the latest round of offers for 40-42% South African concentrate held steady at $263/mt, providing some market stability. Some traders made preliminary stockpiling for 2026, purchasing small amounts in stages, leading to some futures transactions recently. 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 the purchase costs for traders. It is necessary to monitor the subsequent supply situation of chrome ore from Zimbabwe.