[SMM Chrome Daily Review] Ferrochrome Market Shows No Significant Fluctuations Chrome Ore Prices Stabilize and Recover

On December 9, 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 of high-carbon ferrochrome was 8,000-8,150 yuan/mt (50% metal content); in east China, the offer price for high-carbon ferrochrome 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 9,000-9,100 yuan/mt (50% metal content), flat MoM from the previous trading day.

The ferrochrome market experienced limited short-term fluctuations, awaiting the actual implementation of stainless steel production cuts and watching for the release of the new round of mainstream steel mill tender prices for high-carbon ferrochrome. On the supply and demand side, production cuts in the downstream stainless steel market were expected to be concentrated in January-February 2026, providing some support to ferrochrome demand in the short term, but long-term expectations were not optimistic. Meanwhile, most newly released ferrochrome capacity reached normal production status in December, leading to a gradual easing of ferrochrome supply and creating downside risk for prices. Cost side, the decline in chrome ore prices eased, and the immediate smelting cost for ferrochrome was relatively stable, offering limited support to prices. Additionally, in southern regions such as Sichuan, the dry season led to significant electricity price hikes, causing climbing smelting costs and recent shutdowns at many ferrochrome producers. Overall, the ferrochrome market maintained stable operation in the short term.

Raw material side, on December 9, 2025, the spot offer price for 40-42% South African concentrate at Tianjin Port was 50.5-51.5 yuan/mtu; the offer for 40-42% South African raw ore was 46.5-48 yuan/mtu; the offer for 46-48% Zimbabwean chrome concentrate was 51-52 yuan/mtu; the offer for 48-50% Zimbabwean chrome concentrate ore was 52-53 yuan/mtu; the offer for 40-42% Turkish chrome lump ore was 56-57.5 yuan/mtu; the offer for 46-48% Turkish chrome concentrate was 59-60 yuan/mtu, flat MoM from the previous trading day. In the futures market, the offer for 40-42% South African concentrate was $263-265/mt.

The chrome ore market operated steadily during the day, with the continued downward trend halting and some traders showing willingness to adjust prices upward. The current market viewed chrome ore prices as oversold, and purchasing demand from ferrochrome producers gradually emerged, with many large producers entering the market for purchases, boosting confidence. Market participants were watching for the new round of overseas futures offers this week. However, expectations for stainless steel production cuts remained; if the scale of cuts expands further, ferrochrome demand would decrease further, thereby putting pressure on the chrome ore market. In the futures market, the latest round of offers for 40-42% South African concentrate traded flat at $263/mt, stabilizing the market to some extent. Some traders conducted preliminary stockpiling for 2026, purchasing in small batches and stages, leading to increased futures transactions recently. Additionally, severe port congestion at Beira Port in Mozambique recently restricted shipments, causing a significant increase in freight costs for Zimbabwean chrome ore and raising traders' purchase costs. The supply situation for Zimbabwean chrome ore needs monitoring, and the chrome ore market is expected to operate in the doldrums in the short term.