[SMM Chromium Weekly Review] Steel Tender Price Reduction Implemented, Market Temporarily Stabilizes

On December 26, 2025, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,050-8,150 yuan/mt (50% metal content); in Sichuan and north-west China, the ex-factory price of high-carbon ferrochrome was 8,100-8,200 yuan/mt (50% metal content); in east China, the offer price for high-carbon ferrochrome was 8,300-8,400 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 8,200-8,300 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.

This week, the ferrochrome market operated mainly steadily. Tsingshan announced its January 2026 steel mill tender price for high-carbon ferrochrome at 8,195 yuan/mt (50% metal content), down 200 yuan MoM, which was largely in line with market expectations. However, the price-cutting attitude shown by mainstream steel mills affected ferrochrome market sentiment to some extent. Most participants adopted a wait-and-see approach, awaiting further clarity on market direction, while downstream inquiries and purchases were cautious. Nevertheless, considering the clearance of previously low-priced cargoes, retail ferrochrome supply was relatively tight in the market. Furthermore, many ferrochrome producers in south China implemented production cuts or shutdowns, leading to an overall reduction in ferrochrome supply. The market remained in a tight balance in the short term, limiting downside room for ferrochrome prices. During the week, the price of high-carbon ferrochrome in Inner Mongolia edged down by 50 yuan/mt (50% metal content), with most producers holding prices firm. Cost side, coke prices were still expected to decline, while chrome ore futures and spot prices tended to stabilize, leading to a slight decrease in production costs and weakening support for prices. Subsequent attention should be paid to the release of winter stockpiling demand in January and the actual impact of steel mill production cuts during the Chinese New Year holiday in February. The ferrochrome market is expected to maintain stable operation in the short term.

Raw material side, on December 26, 2025, the spot offer price for 40-42% South African fines at Tianjin Port was 52-52.5 yuan/mtu; the offer price for 40-42% South African raw ore was 48-49 yuan/mtu; the offer price for 46-48% Zimbabwean chrome concentrate was 54-55 yuan/mtu; the offer price for 48-50% Zimbabwean chrome concentrate was 55-56 yuan/mtu; the offer price for 40-42% Turkish chrome lump ore was 58-60 yuan/mtu; the offer price for 46-48% Turkish chrome concentrate was 60.5-61.5 yuan/mtu, flat MoM from the previous trading day. In the futures market, the offer price for 40-42% South African fines was $263-265/mt.

Chrome ore prices rose at the beginning of the week and then gradually stabilized. Affected by the divergence in port inventory structure, prices for mainstream lump ore with scarce supply saw more significant increases. Zimbabwean concentrate prices increased earlier due to shipment restrictions caused by port congestion, while offers for South African fines, which had ample supply, were relatively stable. The market focused on the pace of winter stockpiling developments and the production schedules of ferrochrome and stainless steel. In the short term, driven by firm sentiment, chrome ore prices are expected to operate mainly steadily. Futures side, affected by the overseas Christmas holiday, the futures offer for 40-42% South African fines was somewhat delayed. However, considering the current firm spot prices domestically, chrome ore futures are likely to maintain a flat trend. Large domestic traders have begun purchasing to build stockpiles for 2026, but due to foreign suppliers controlling the market, securing purchases has been difficult.