[SMM Ferrochrome Daily Review] Ore End Shows Strength, Ferrochrome Maintains Stable Operations

On March 2, 2026, high-carbon ferrochrome prices in Inner Mongolia; Sichuan, and north-west China rose 25-50 yuan/mt (50% metal content) MoM from the previous trading day; high-carbon ferrochrome prices in east China remained unchanged MoM from the previous trading day. For imported iron, high-carbon ferrochrome prices from India; Kazakhstan; and South Africa remained unchanged MoM from the previous trading day.

During the day, ferrochrome market quotations were slightly raised, with overall stable operation. Cost side, chrome ore prices continued to rise, pushing up the production cost of ferrochrome, providing strong bottom support, and producers held prices firm. Demand side, as holidays ended and resumption of work and production gradually took place, the "Golden March, Silver April" peak consumption season began to take effect, increasing inquiries. Downstream stainless steel mills saw a significant rebound in production schedules, and the demand for ferrochrome purchases is expected to be released. Currently, spot ferrochrome supplies are tight, with some manufacturers' orders already scheduled until the end of March, and it is expected that the ferrochrome market will mainly operate stably in the short term. In the overseas market, South Africa's Eskom announced that the policy of providing 62 cents/kWh electricity quotes to the ferrochrome industry is steadily advancing, and it is expected that South African ferrochrome production will stabilize and recover, potentially creating competitive pressure with domestic ferrochrome in the future.

Raw material side, on March 2, 2026, spot Tianjin port 40-42% South African powder; 40-42% South African raw ore; 46-48% Zimbabwean chrome concentrate; 48-50% Zimbabwean chrome concentrate; 40-42% Turkish chrome lump ore, 46-48% Turkish chrome concentrate ore quotations were up 0.5 yuan/mtu MoM from the previous trading day. On the futures front, the latest quotation for 40-42% South African chrome concentrate was $300/mt; Zimbabwean chrome ore overseas market quotations remained at a high level.

During the day, the chrome ore market held up well, with both spot and futures prices continuing to rise. Spot side, stimulated by the "Golden March, Silver April" peak season expectations and the current high purchase costs, traders' quotations continued to climb. Additionally, most ferrochrome producers maintained normal production, and with existing inventory being consumed, they started to inquire and purchase, providing solid bottom support for chrome ore prices. On the futures front, the latest quotation for 40-42% South African chrome concentrate was $300/mt, up $3 MoM from before the holiday. Zimbabwean futures quotations remained high due to the indirect impact of the ban on raw ore exports. Mainstream chrome ore shipments were affected by geopolitical conflicts in the Middle East, leading to increased fuel prices and higher ocean freight rates, further raising the cost of purchasing chrome ore domestically. It is expected that the chrome ore market will generally remain stable with a slight rise in the short term.