[SMM Chromium Weekly Review] Quotations Slightly Raised, Chromium Market Shows Signs of Recovery

On December 12, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,000-8,150 yuan/mt (50% metal content); in Sichuan and north-west China, the ex-factory price was 8,050-8,150 yuan/mt (50% metal content); in east China, the quotation for high-carbon ferrochrome was 8,100-8,300 yuan/mt (50% metal content), up 25-50 yuan/mt (50% metal content) MoM from the previous trading day. For imported ferrochrome, the quotation for South African high-carbon ferrochrome was 8,200-8,400 yuan/mt (50% metal content); the quotation for Kazakh high-carbon ferrochrome was 9,000-9,100 yuan/mt (50% metal content), flat MoM from the previous trading day.

This week, the ferrochrome market operated steadily, with retail quotations rising slightly and the price spread between spot orders and long-term contracts narrowing. Power tariff hikes during the dry season led to production halts at many ferrochrome producers in south China, while power supply constraints in north China affected production from new capacity. Overall ferrochrome production fell short of expectations, limiting the degree of oversupply. Earlier declines in chrome ore prices prompted widespread selling at low prices. Recently, tight spot supply of ferrochrome drove a slight price increase. Additionally, cost side, chrome ore futures held flat while spot prices rebounded, causing a slight increase in immediate smelting costs for ferrochrome, providing some support to prices. However, considering that production cuts in downstream stainless steel are certain and steel mills have completed raw material stocking, ferrochrome demand may struggle to improve subsequently, constraining further price increases. Participants remained relatively pessimistic, mainly awaiting the new round of steel mill tender prices.

Raw material side, on December 12, 2025, spot quotations at Tianjin Port were: 40-42% South African fines at 51-51.5 yuan/mtu; 40-42% South African raw ore at 46.5-48 yuan/mtu; 46-48% Zimbabwean chrome concentrate at 51-52 yuan/mtu; 48-50% Zimbabwean chrome concentrate at 52-53 yuan/mtu; 40-42% Turkish chrome lump ore at 56-57.5 yuan/mtu; 46-48% Turkish chrome concentrate at 59-60 yuan/mtu, all flat MoM from the previous trading day. For futures, 40-42% South African fines were quoted at $263-265/mt.

This week, the chrome ore market operated steadily with prices rebounding. On one hand, chrome ore prices had largely reached oversold bottom levels; after traders sold at low prices, many held back from selling, coupled with persistently flat futures, highlighting firm price intentions. On the other hand, ferrochrome producers gradually entered the market for purchases, demand was gradually released, counteroffer pressure decreased, and trading activity improved, leading to a rebound in chrome ore prices. For futures, the latest round of overseas market futures quotations for 40-42% South African fines held flat again at $263/mt, with firm price attitudes supporting the chrome ore market and increasing purchase actions. However, the dampening effect of downstream stainless steel production cuts on chrome ore demand persists, leaving insufficient upward momentum for a significant rise in the chrome ore market. Subsequent attention should remain on overseas futures quotations and changes in the procurement pace of ferrochrome producers.