[SMM Daily Chrome Review] Chrome Ore Prices Continued to Rise, and Sentiment Over Tight Supply Intensified

On March 12, 2026, domestic ferrochrome prices held steady, while imported ferrochrome quotes were raised. Inner Mongolia high-carbon ferrochrome was quoted at 8,600-8,700 yuan/mt (50% metal content); Kazakhstan ferrochrome was quoted at 9,900-10,100 yuan/mt (50% metal content).

The ferrochrome market remained firm during the day, with cost support strengthening further. Producers showed a strong willingness to hold prices firm, and many expected further gains. Raw material side, chrome ore futures quotes were raised, and spot transaction prices moved higher, pushing up ferrochrome smelting costs. Meanwhile, the rebound in downstream stainless steel production schedules improved demand, and some steel mills had begun tender-based restocking. However, retail spot supply was currently relatively tight, and prompt delivery faced some difficulty, while the actual transaction pace remained relatively stable. Ferrochrome prices are expected to remain firm and stable in the short term, pending further release of downstream demand. In the overseas market, the National Union of Mineworkers of South Africa said it opposed Samancor's layoff plan and was actively negotiating to safeguard employees' jobs. Although electricity price cuts for the ferrochrome industry had been approved, current electricity prices were still insufficient to support a full recovery of South Africa's ferrochrome industry, limiting the boost to China's ferrochrome imports in the short term.

Raw materials side, as of March 12, 2026, spot chrome ore quotes saw no adjustment. At Tianjin Port, 40-42% South African concentrate was quoted at 60 yuan/mtu; 40-42% Turkish lumpy chrome ore was quoted at 69.5 yuan/mtu. On the CIF futures side, 40-42% South African concentrate was quoted at $312/mt, up $5 MoM.

The chrome ore market was generally strong during the day. In the spot market, mainstream overseas mines raised quotes by another $5, further boosting traders' bullish confidence and keeping market sentiment on the rise. As low-priced cargoes were cleared and high-priced chrome ore arrived at port, traders' willingness to hold prices firm became more evident amid rising costs, and quotes steadily tested higher. Downstream ferrochrome producers maintained rigid restocking demand due to persistently high production, but remained relatively cautious toward current elevated chrome ore prices, with actual transactions still dominated by small orders for immediate needs. On the futures side, South African overseas market quotes rose to $312/mt, in line with earlier bullish expectations. As South Africa's ferrochrome recovery progressed, expectations for tighter ore supply strengthened, and market confidence remained ample. Supported by the peak consumption season of "Golden March and Silver April," together with higher ferrochrome prices and the upward transmission of positive effects, chrome ore prices are expected to fluctuate at highs in the short term.