[SMM Chromium Daily Review] Trading Is Expected to Recover on Improved Expectations; the Chromium Market Remains Firm and Stable

On March 3, 2026, offers for high-carbon ferrochrome in Inner Mongolia; Sichuan and north-west China were unchanged from the previous trading day; east China high-carbon ferrochrome was unchanged from the previous trading day. For imported ferrochrome, offers for Indian high-carbon ferrochrome; Kazakhstani high-carbon ferrochrome; and South African high-carbon ferrochrome were unchanged from the previous trading day.

The ferrochrome market held steady during the day. Driven by a rise in cost-side chrome ore prices, ferrochrome production costs continued to move higher, and producers’ offer floors were firmly supported, with most maintaining bullish expectations. Meanwhile, the downstream stainless steel market performed objectively, with production schedules rebounding sharply, awaiting the subsequent release of demand for raw material ferrochrome purchases. In the overseas market, Glencore-Merafe postponed layoffs to March 31, awaiting South Africa’s power utility Eskom to advance the 62-cent/kWh electricity price policy. If implemented, this would significantly benefit the recovery of South Africa’s ferrochrome industry and create some competitive pressure on the domestic ferrochrome market.

Raw materials: On March 3, 2026, spot cargo offers for Tianjin Port 40-42% South African fines; 40-42% South African raw ore; 46-48% Zimbabwe chrome concentrate fines; 48-50% Zimbabwe chrome concentrate fines; 40-42% Turkish lumpy chrome ore; and 46-48% Turkish chrome concentrate ore were raised by 1 yuan/mtu from the previous trading day. On the futures side, the latest offer for 40-42% South African fines was $300/mt; Zimbabwe chrome ore prices in the overseas market remained at high levels.

Trading activity in the chrome ore market improved during the day, and the overall market held up well. On the spot side, higher futures offers lifted purchase costs, while port arrivals of chrome ore declined, and expectations of tighter supply prompted domestic traders to test higher offers. In addition, with the holiday officially over, ferrochrome producers resumed work and production; as existing inventory continued to be consumed, they began making inquiries and purchasing, and spot transactions recovered. On the futures side, the latest offer for South African 40-42% chrome concentrate ore was $300/mt, up $3 MoM from before the holiday. Affected indirectly by the raw ore export ban, Zimbabwe’s futures offers remained elevated. Mainstream chrome ore shipments were constrained by Middle East geopolitical conflicts; rising fuel prices pushed up ocean freight rates, further increasing domestic chrome ore purchase costs. The chrome ore market is expected to be generally stable with slight rise in the short term.