[SMM Chrome Weekly Review] Transactions Softened, Ferrochrome Remained Temporarily Stable, Futures Prices Were Raised and Chrome Ore Stayed Firm

On March 27, 2026, high-carbon ferrochrome quotations were unchanged, with Inner Mongolia high-carbon ferrochrome quoted at 8,600-8,700 yuan/mt (50% metal content).

This week, trading in the ferrochrome market was mediocre, and steel mill tender prices came in below expectations, weighing on market confidence. Demand side, steel mills had sufficient raw material inventory and no large-scale procurement demand for the time being, with purchases mainly made on an as-needed restocking basis and limited inquiry activity. Supply side, elevated chrome ore prices combined with rising electricity prices significantly increased production cost pressure. Ferrochrome producers faced losses, and many had maintenance and production cut plans, so ferrochrome supply is expected to decline going forward. Considering the boost from the peak consumption season of “Golden March and Silver April,” the stainless steel market recovered, and planned production rebounded to a high level, which will provide rigid demand support for ferrochrome going forward. Overall, the ferrochrome supply-demand relationship gradually returned from the previous surplus to a tight balance, and ferrochrome prices are expected to remain firm in the short term. In markets outside China, South African chrome producer Glencore proposed opposition to the “unworkable” electricity pricing policy of 62 rand/kWh. Local ferrochrome production resumptions remained limited, with limited short-term impact on medium-carbon ferrochrome supply, and further developments should be monitored.

Raw material side, on March 27, 2026, chrome ore prices were unchanged. At Tianjin Port, 40-42% South African concentrate, 40-42% Turkish lumpy chrome ore, and 48-50% Zimbabwean concentrate were flat from the previous trading day’s quotations; on the CIF futures side, the weekly quotation for 40-42% South African concentrate rose to $318/mt.

This week, the chrome ore market extended its previous firm trend, with futures quotations raised steadily, while gains in spot price slowed relatively. On the spot side, limited increases in steel mill tender prices left the market short of confidence. In addition, many ferrochrome producers carried out maintenance and cut production due to the risk of losses, weakening expectations for ore demand. Meanwhile, port inventory of chrome ore continued to accumulate, increasing shipment pressure on traders holding South African concentrate, and bearish expectations strengthened their willingness to sell at lower prices. Mainstream chrome ore varieties remained firmly quoted due to an obvious shortage of cargoes, but ferrochrome producers were currently mostly making spot order purchases to meet rigid restocking demand, with limited acceptance of high-priced cargoes, so actual transactions were relatively mediocre. On the futures side, quotations from major mines outside China continued to rise. South African concentrate rose to $318/mt; Zimbabwean concentrate held steady at $375/mt; Turkish concentrate remained at $395/mt. Rising fuel prices affected ocean freight rates, lifting the landed cost of chrome ore and supporting high quotations in the short term. However, considering that expectations for downstream contract renewals may weaken later, traders in China had some fear of high prices and remained cautious in purchases. Recent trading activity was average, and the chrome ore market is expected to remain temporarily stable in the short term.