[SMM Daily Chromium Review] Cost Support Kept Quotations Firm, and Recent Market Fluctuations Were Limited

As of March 25, 2026, high-carbon ferrochrome quotations were unchanged, with Inner Mongolia high-carbon ferrochrome quoted at 8,600-8,700 yuan/mt (50% metal content); low- and micro-carbon ferrochrome quotations were raised, with Inner Mongolia low-carbon ferrochrome quoted at 13,700-14,000 yuan/60 mt (50% metal content).

The ferrochrome market was stable during the day. Retail ferrochrome had already completed price increases earlier, supported by costs and relatively tight supply, and current quotations remained steady. Low- and micro-carbon ferrochrome was driven higher by the increase in high-carbon ferrochrome prices, with quotations rising accordingly, while the market awaited follow-up in actual transactions. The increase in steel mill tender prices fell short of expectations, which affected market confidence to some extent, but cost factors and demand support still gave ferrochrome prices a certain degree of resilience. Chrome ore prices remained high, pushing up production costs and providing strong support at the bottom; meanwhile, stainless steel production schedules increased, inventories were consumed, and rigid demand was released. 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.

Raw material side, as of March 25, 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; on the CIF futures side, the weekly quotation for 40-42% South African concentrate was $315/mt.

The chrome ore market held up well during the day, with differentiated adjustments in quotations among different categories of chrome ore. On the spot side, overall port inventory of chrome ore remained high, but there was clear structural divergence. South African concentrate supply was ample, and the upward momentum slowed; for Zimbabwean concentrate, mainstream ore quotations stayed firm due to tight supply. Demand side, downstream ferrochrome plants mainly restocked for rigid demand, and transaction activity was average. In addition, affected by the risk of losses, many ferrochrome plants had maintenance and production cut plans, which may weaken demand for chrome ore and to some extent restrain further increases in ore prices. On the futures side, heightened international tensions and rising ocean freight rates increased arrival costs, supporting a steady increase in chrome ore quotations in the overseas market. South African concentrate remained at $315/mt; Zimbabwean concentrate held steady at $375/mt; Turkish concentrate quotations may rise further. Fear of high prices made China traders cautious about purchases. In the short term, the chrome ore market is expected to remain generally stable with slight rise, and further attention should be paid to the implementation of production cut plans at ferrochrome plants and the impact of changes in the international situation.