[SMM Chromium Weekly Review] Market Operated Steadily Before the Holiday, Festive Atmosphere Prevailed

On December 31, 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 was 8,100-8,200 yuan/mt (50% metal content); in east China, the offer price was 8,300-8,400 yuan/mt (50% metal content), flat MoM from the previous trading day. For imported material, 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 was affected by the New Year holiday, with a strong festive atmosphere. Most producers adopted a wait-and-see attitude, and inquiry and transaction activity was generally mediocre. With considerable profits, ferrochrome producers actively maintained production. Ferrochrome production continued to increase in December, up 0.66% MoM and significantly up 40.71% YoY. Considering that most previously low-priced material had been sold off, spot retail ferrochrome supply was relatively tight, and producers maintained firm pricing sentiment. However, the downstream stainless steel market showed mediocre performance before the holiday, and demand-side support for ferrochrome was limited. The supply-demand relationship in the ferrochrome market still requires attention to changes in winter stockpiling activity in January after the holiday. The market is expected to maintain stable operation in the short term.

Raw material side, on December 31, 2025, the spot offer price 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, all flat MoM from the previous trading day. For futures, the offer price for 40-42% South African fines was $263-265/mt.

Affected by the Christmas and New Year holidays, the chrome ore market showed mediocre performance this week, with low participation from buyers and sellers and sluggish market trading activity. Tight supply coupled with concentrated demand provided solid support for mainstream lump ore prices. However, approaching the New Year holiday, the market trading atmosphere was sluggish, and offers saw no adjustments. Most buyers and sellers adopted a wait-and-see attitude, awaiting decisions based on January's winter stockpiling situation after the holiday. For futures, due to the impact of the overseas Christmas holiday, the futures offer for 40-42% South African fines was somewhat delayed. Considering the decrease in purchase costs due to the decline in the US dollar to yuan exchange rate and the presence of inquiries from domestic traders, the market is watching for any potential increases in overseas market offers. The chrome ore market is expected to operate steadily in the short term.