[SMM Daily Chromium Review] The Ferrochrome Market Remained Stable, and There Was No Adjustment in Ore Prices for the Time Being

On March 31, 2026, high-carbon ferrochrome quotations were adjusted slightly. Quotations for high-carbon ferrochrome in Inner Mongolia were flat at 8,600-8,700 yuan/mt (50% metal content), while quotations in Sichuan edged down by 50 yuan to 8,650-8,800 yuan/mt (50% metal content).

The ferrochrome market was stable during the day. The price spread between retail and long-term contract prices remained, while the north-south price spread narrowed. Cost side, although spot chrome ore prices pulled back somewhat, they remained at high levels overall, and losses at ferrochrome producers improved only to a limited extent. Some producers still faced loss pressure and showed a strong willingness to hold prices firm. Ferrochrome prices are expected to remain temporarily stable in the short term. Demand side, downstream steel mills maintained high production schedules, and rigid procurement demand for ferrochrome has yet to be released. Considering that ferrochrome producers indicated they had production cut plans, ferrochrome supply may narrow later, and the supply-demand relationship is gradually shifting toward a tight balance.

Raw material side, on March 31, 2026, spot chrome ore prices were stable, while futures prices remained firm. At Tianjin Port, 40-42% South African concentrate, 40-42% Turkish lumpy chrome ore, and 48-50% Zimbabwe chrome concentrate were flat from the previous trading day. In the CIF futures market, the rally in 40-42% South African concentrate slowed last week, with quotations at $318/mt.

The chrome ore market was moderately active during the day. News of production cuts at downstream ferrochrome plants weighed on trader confidence, slowing the pace of inquiries and purchases, with restocking mainly driven by rigid demand. Coupled with inventory at high levels at ports, traders faced greater shipment pressure, and quotations from some small and medium-sized ore traders softened. Market transactions were mostly in small lots, and the overall trading atmosphere was subdued. In the futures market, quotations from major mines outside China remained firm, with 40-42% South African concentrate holding at $318/mt, while Zimbabwe chrome concentrate was steady at $375/mt and Turkish concentrate at $395/mt. Heightened uncertainty in the international situation and rising ocean freight rates increased the landed cost of chrome ore, supporting chrome ore prices. However, buyers in China were cautious about purchases due to market uncertainty, mainly waiting to see this week's offers from major mines, and trading activity has yet to improve.