[SMM Chromium Weekly Review] Bottom-End Cost Support, Stronger Upward Price Sentiment

On March 6, 2026, retail quotations for ferrochrome remained unchanged. During the week, quotations for high-carbon ferrochrome in Inner Mongolia rose by 100 yuan to 8,600 yuan/mt (50% metal content); quotations in Sichuan were 8,700 yuan/mt (50% metal content), and quotations in east China were 8,800 yuan/mt (50% metal content). For imported ferrochrome, Kazakhstan high-chrome quotations were raised by 150 yuan to 9,700 yuan/mt (50% metal content).

This week, the ferrochrome market mainly ran steadily, with rising costs becoming the core factor underpinning firm quotations. On the raw material side, spot and futures prices for chrome ore continued to climb, directly driving up smelting cost for ferrochrome. In addition, adjustments to power policies in south China led to higher electricity prices, widening regional differences in power costs, and some producers cut production or halted operations. Meanwhile, some producers had tight availability of spot cargo for sale after fulfilling delivery orders, and sentiment to hold prices firm was strong. Demand side, optimistic expectations for the “Golden March, Silver April” peak consumption season, coupled with stimulus from news on Indonesian nickel ore, supported a gradual recovery in downstream stainless steel, with planned production rebounding sharply. Steel mills entered the market to purchase in order to restock raw material inventory. Overall supply and demand maintained a tight balance, and most participants held bullish expectations. In the overseas market, ferrochrome supply still faced uncertainties; continued attention should be paid to follow-up developments of South Africa’s special electricity price policy and the potential impact of South African ferrochrome’s gradual recovery on domestic ferrochrome imports.

On the raw material side, on March 6, 2026, quotations for chrome concentrate fines held steady, while mainstream lumpy ore quotations were raised again. Tianjin Port: 40-42% South African fines were flat at 59.5 yuan/mtu; 48-50% Zimbabwe chrome concentrate fines were flat at 62 yuan/mtu; 40-42% Turkish chrome lumpy ore quotations were raised to 68.5 yuan/mtu. At the CIF futures level, 40-42% South African fines were quoted at $307/mt; 48-50% Zimbabwe chrome concentrate fines were quoted at $355/mt; 40-42% Turkish lumpy ore was quoted at $312/mt.

This week, the chrome ore market performed strongly, with quotations continuing to rise. In the spot market, higher overseas market quotations boosted market confidence; coupled with currently elevated costs for purchasing chrome ore and receiving it at port, domestic traders mostly tested higher quotations. Meanwhile, downstream ferrochrome plant production remained stable at high levels. Although acceptance of high-priced cargo was limited, existing inventory continued to be consumed, and some producers began making inquiries and purchasing to restock, with demand rising steadily. However, shipments of chrome ore declined somewhat, port inventory fell slightly, and mainstream chrome ore supply was clearly tight. Traders’ sentiment to hold prices firm was strong, with spot quotations mostly increasing by 1-2 yuan/mtu; some tight cargoes such as mainstream lumpy ore even saw increases of 4 yuan/mtu, and bullish expectations continued to heat up. In overseas futures, local ferrochrome smelting in South Africa recovered; Zimbabwe tightened its review process for fines exports under the ban; and geopolitical conflict in the Middle East lifted the ocean freight rate, increasing shipment costs for Turkish chrome ore. Chrome ore exports declined somewhat, and futures quotes were raised significantly. It was expected that in the short term, the chrome ore market would mainly maintain a fluctuating upward trend.