In 2025, reduced imports and earlier production declines drove up prices in China's high-carbon ferrochrome market, prompting companies to expand capacity. Annual output reached a record 9.038 million tons, with the top ten producers accounting for over 73% of total production.

New capacity additions accelerated in the second half of the year due to improved profitability, resulting in 1.2 million tons of additional capacity and 18 new furnaces.

Looking ahead, about 1.2 million tons of new premium capacity is scheduled for commissioning, which is expected to keep output high in 2026 while improving the overall supply structure. However, continued expansion may lead to oversupply.

Northern China's cost advantages are likely to further pressure higher-cost producers in the south. The industry will need to monitor the pace of new capacity releases and policy directions affecting smaller-scale operations in southern regions.