[SMM Daily Chromium Review] Production Cuts and Maintenance Tighten Supply, While Elevated Costs May Lead to Losses

On March 19, 2026, ferrochrome quotations saw no adjustment for the time being. Inner Mongolia high-carbon ferrochrome was quoted at 8,600-8,700 yuan/mt (50% metal content); Kazakhstan ferrochrome was quoted at 10,300-10,400 yuan/mt (50% metal content).

Intraday, the ferrochrome market remained temporarily stable. Overseas market futures quotations for chrome ore continued to rise, raw material costs kept climbing, and cost pressure on ferrochrome production increased significantly, with some producers possibly facing the risk of losses. In response, the Ulanqab Ferroalloy Industry Association held a meeting, calling on member enterprises to jointly address the cost crisis. According to statistics, from March to April 2026, a total of 17 submerged arc furnaces in Inner Mongolia are scheduled for maintenance, which is expected to affect high-carbon ferrochrome production by about 110,000 mt. While supply tightened somewhat, downstream stainless steel planned production remained high, and procurement demand for ferrochrome was robust, so the ferrochrome market's supply-demand relationship may return to a tight balance. As the market enters a new round of steel mill tender bidding, most participants hold bullish expectations and are watching whether the price spread between long-term contract prices and retail prices for ferrochrome can be narrowed. In the short term, the ferrochrome market is expected to remain mainly stable.

Raw material side, on March 19, 2026, spot chrome ore quotations continued to increase. Tianjin Port 40-42% South African concentrates were unchanged; 40-42% Turkish lumpy chrome ore was raised to 72 yuan/mtu; 48-50% Zimbabwean fines held steady at 63.5 yuan/mtu. On the CIF futures side, the quotation for 40-42% South African fines rose to $315/mt.

Intraday, the chrome ore market held up well. On the spot side, continued increases in overseas market quotations boosted market confidence, and traders held offers firm. However, recent market trading activity was average, and actual transactions slowed down. On the demand side, some ferrochrome producers announced follow-up maintenance plans for equipment, and the decline in ferrochrome production affected chrome ore demand to a certain extent. Most participants focused on adjustments in downstream stainless steel production schedules and guidance from the new round of steel mill tender prices, and the chrome ore market is expected to fluctuate at highs in the short term. On the futures side, rising oil prices lifted shipping costs, and overseas ore miners showed a strong willingness to hold prices firm. South African fines were raised by $3 to $315/mt; Zimbabwean fines held steady at $375/mt; Turkish lumpy ore broke above $390/mt. Most traders in China stayed on the sidelines and were relatively cautious in purchasing, with some fear of high prices.