[SMM Chrome Daily Review] Ferrochrome market continues stable trend, chrome ore prices slightly rise boosting confidence.

On December 11, 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, the offer price 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.

During the day, ferrochrome maintained a stable trend, with limited adjustments in market fundamentals at year-end. Recent electricity price hikes during the dry season led to production halts at many ferrochrome plants in south China, while the actual release of new capacity in the north was constrained by issues such as power supply, falling short of expectations, resulting in a limited overall ferrochrome oversupply. Additionally, chrome ore futures were flat while spot prices rebounded, leading to a slight increase in ferrochrome costs, providing short-term price support. However, with steel mill tender prices remaining high, producers actively fulfilled long-term contract orders, and steel mills completed raw material stocking. Given that stainless steel production cuts are a certainty, there is significant downside risk for ferrochrome prices in the later market, with many awaiting the new round of steel mill tender prices.

On the raw material side, on December 11, 2025, the spot offer price for 40-42% South African fines at Tianjin Port was 51-51.5 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 powder 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 powder was 59-60 yuan/mtu, up 0.25 yuan/mtu MoM from the previous trading day. In the futures market, the offer for 40-42% South African fines was $263-265/mt.

During the day, chrome ore prices rose slightly, and market sentiment recovered. Ferrochrome producers gradually entered the market for procurement, releasing demand gradually. Combined with a certain degree of tightness in supply due to previous low-price sales, traders' willingness to hold prices firm strengthened, and confidence improved. Moreover, recently arrived chrome ore shipments mostly consisted of previously high-priced futures; with time spreads inverted, some holding back of stocks occurred, and the short-term chrome ore market operated steadily. In the futures market, the latest round of offers for 40-42% South African fines in the overseas market futures remained flat again at $263/mt, with a firm price attitude supporting the chrome ore market and increasing purchase activity. However, the dampening effect of downstream stainless steel production cuts on chrome ore demand persists, and the chrome ore market lacks strong upward momentum. Subsequent attention should still be paid to changes in overseas market futures offers and the procurement pace of ferrochrome producers.