[SMM Chrome Daily Review] Cautious Inquiry for Ferrochrome, Structural Divergence in Chrome Ore Inventory

On December 24, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,050-8,200 yuan/mt (50% metal content); in Sichuan and north-west China, the ex-factory price was 8,100-8,250 yuan/mt (50% metal content); in east China, the offer price was 8,300-8,400 yuan/mt (50% metal content), flat MoM. For imported material, 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.

The ferrochrome market operated steadily during the day, with offers not declining further. However, the drop in the steel mill tender price for January 2026 impacted market confidence. Due to concerns over expectations for stainless steel production cuts, downstream purchase willingness was moderate, with most participants adopting a wait-and-see approach, leading to low transaction activity. In the short term, however, cost support limited the downside room for ferrochrome prices. Chrome ore prices continued to show a downward trend, while the arrival of high-priced futures increased ferrochrome production costs. Additionally, current production cuts in south China, coupled with limited release of new capacity in the north, maintained a tight supply-demand balance for ferrochrome. The ferrochrome market is expected to remain largely stable in the near term.

On the raw material side, on December 24, 2025, the spot offer for 40-42% South African fines at Tianjin Port was 52-52.5 yuan/mtu; the offer for 40-42% South African raw ore was 48-49 yuan/mtu; the offer for 46-48% Zimbabwean chrome concentrate was 54-55 yuan/mtu; the offer for 48-50% Zimbabwean chrome concentrate was 55-56 yuan/mtu; the offer for 40-42% Turkish chrome lump ore was 58-60 yuan/mtu; the offer for 46-48% Turkish chrome concentrate was 60.5-61.5 yuan/mtu, up 0.5-0.75 yuan/mtu MoM. For futures, the offer for 40-42% South African fines was $263-265/mt.

During the day, some chrome ore products continued their upward trend, with offers raised again. Lump ore, particularly mainstream lump supplies, was relatively tight, leading to strong sentiment to hold prices firm. In contrast, South African fines were readily available, resulting in significant sales pressure, and port inventories for chrome ore continued to accumulate, indicating a structural mismatch. Ferrochrome producers have largely completed their phased restocking demand, with limited recent inquiry enthusiasm, leading to a stagnant transaction environment. In the futures market, due to the Christmas holiday, overseas mine offers were temporarily suspended, and the most-traded mine offer for 40-42% South African fines remained flat at $263/mt. Domestic traders recently made purchases based on stockpiling plans, but overseas mines gradually strengthened their control over supply, limiting volume releases. The chrome ore market is expected to operate steadily in the short term.