[SMM Daily Chromium Review] Uptrend in Ore Prices Continues, with Cost Support for Ferrochrome

On March 4, 2026, quotes for high-carbon ferrochrome in Inner Mongolia; Sichuan; and north-west China were flat from the previous trading day on a MoM basis; high-carbon ferrochrome in east China was flat from the previous trading day on a MoM basis. For imported ferrochrome, quotes for Indian high-carbon ferrochrome; Kazakhstani high-carbon ferrochrome; and South African high-carbon ferrochrome were flat from the previous trading day on a MoM basis.

The ferrochrome market held steady intraday. Cost side, chrome ore prices continued to rise, pushing raw material costs higher; meanwhile, affected by power policy adjustments, electricity prices were raised in some regions, lifting power costs. Bottom support for ferrochrome quotes remained strong, and producers’ willingness to hold prices firm became more evident. Demand side, expectations for the peak season of “Golden March and Silver April” provided a boost; downstream stainless steel market quotes held steady, production schedules rebounded sharply, and rigid demand for ferrochrome provided support. The earlier oversupply issue in ferrochrome eased, and most participants held bullish expectations; in the short term, the ferrochrome market was expected to remain stable with an improving bias. Overseas market, close attention was still needed on progress of South Africa’s special electricity tariff policy for the ferrochrome industry at 62 rand/kWh, and on the potential impact on the domestic market from a recovery in South Africa’s ferrochrome industry that could lift China’s ferrochrome imports.

Raw material, on March 4, 2026, spot cargo quotes 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 0.5 yuan/mtu from the previous trading day on a MoM basis. Futures, the latest offer for 40-42% South African fines was $300/mt; overseas market quotes for Zimbabwe chrome ore remained high.

The chrome ore market held up well intraday, with stronger inquiry interest and improved deal activity. Spot cargo, futures quotes stayed high, significantly increasing traders’ purchase costs; coupled with a decline in shipments and fewer recent arrivals, expectations of tighter supply supported chrome ore quotes moving higher. Meanwhile, downstream ferrochrome producers gradually resumed work and production, pre-holiday raw material inventory was gradually consumed, spurring restocking demand and increasing inquiry and purchasing activity. Futures, South African 40-42% chrome concentrate ore was quoted at $300/mt, and spot order quotes were expected to continue to be raised this week; Zimbabwe chrome concentrate ore saw quotes raised due to local export control policies. Mainstream chrome ores such as Turkey were affected by Middle East geopolitical conflicts, with ocean freight rates rising markedly and shipping times lengthening, increasing arrival costs and supporting prices to rise. The chrome ore market was expected to maintain a firm tone in the short term.