[SMM Chromium Daily Review] Trading Sluggish as Holiday Approaches, Chromium Market Remains Stable

On February 4, 2026, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,500-8,600 yuan/mt (50% metal content); in Sichuan and north-west China, the ex-factory price was 8,500-8,700 yuan/mt (50% metal content); in east China, offers for high-carbon ferrochrome were 8,700-8,800 yuan/mt (50% metal content), flat MoM. For imported material, offers for Indian high-carbon ferrochrome were 8,600-8,700 yuan/mt (50% metal content); offers for Kazakh high-carbon ferrochrome were 9,500-9,700 yuan/mt (50% metal content), up 200 yuan MoM.

The ferrochrome market maintained stable operation during the day. Entering February, downstream stainless steel mills successively conducted maintenance and cut production, coupled with the completion of winter stockpiling, leading to weaker inquiry and purchase demand for ferrochrome and generally moderate market activity. However, high chrome ore prices raised production costs, providing strong support at the bottom of ferrochrome prices. Additionally, spot retail ferrochrome supply was tight, primarily focused on fulfilling previous orders, and some producers had orders signed beyond the Chinese New Year. In the short term, the ferrochrome market is expected to maintain stable operation, with relatively optimistic and bullish expectations for the upcoming steel tender prices.

Raw material side, on February 4, 2026, spot 40-42% South African concentrate at Tianjin Port was offered at 57-58 yuan/mtu; 40-42% South African raw ore was offered at 52-54 yuan/mtu; 46-48% Zimbabwean chrome concentrate was offered at 59-60 yuan/mtu; 48-50% Zimbabwean chrome concentrate was offered at 60-61 yuan/mtu; 40-42% Turkish chrome lump ore was offered at 64-65 yuan/mtu; 46-48% Turkish chrome concentrate was offered at 65-66 yuan/mtu, all flat MoM. For futures, the latest offer for 40-42% South African concentrate was $297/mt, unchanged MoM.

The chrome ore market operated steadily during the day, with bullish sentiment remaining, but inquiry and transaction activity weakened. On the spot side, although offers for various chrome ore varieties remained stable, purchasing demand from ferrochrome producers decreased due to the end of winter stockpiling and the approaching Chinese New Year holiday, leading to reduced market transaction activity and a stalemate in the tug-of-war between sellers and buyers. However, the market holds bullish expectations for next month's steel tender prices, coupled with potential tightening in future chrome ore supply, keeping traders' sentiment calm. On the futures side, the latest round of offers for 40-42% South African concentrate held steady at $297/mt, but no actual transactions were concluded due to some fear of high prices in the market. Zimbabwean concentrate prices remained firm at high levels due to mining policy impacts and rainy season shipment constraints, making local purchases relatively difficult. In the short term, the chrome ore market is expected to operate with strong stability.