[SMM Daily Chromium Review] Trading Sentiment Was Subdued, and the Market Remained Temporarily Stable

On April 1, 2026, high-carbon ferrochrome quotations were unchanged, with Inner Mongolia high-carbon ferrochrome quoted flat at 8,600-8,700 yuan/mt (50% metal content).

The ferrochrome market was stable during the day. Supported by costs, producers showed a strong willingness to hold prices firm, the price spread between retail and long-term contract prices still remained, and quotations in northern and southern regions tended to converge. Although spot chrome ore prices have pulled back, they remained at overall high levels, and losses at some producers have not been fully eased. Coupled with rigid demand driven by high steel mill production schedules downstream, ferrochrome prices were temporarily stable in the short term. Refined chromium producers held an industry meeting to discuss response strategies to the recent situation of rising costs but stable prices, and close attention should be paid to subsequent price trends in low- and micro-carbon ferrochrome. In markets outside China, Glencore-Merafe agreed to delay its layoff plan by one week to allow Eskom to advance its preferential electricity pricing policy of 62 rand/kWh. In the short term, South Africa's ferrochrome production resumptions progressed slowly, and the inflow of imported ferrochrome had a limited impact on supply in China.

Raw material side, on April 1, 2026, spot chrome ore prices remained stable, while futures prices stayed firm. 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 rally in 40-42% South African concentrate slowed last week, with quotations at $318/mt.

Trading activity in the chrome ore market was not active during the day, and both spot and futures prices remained stable. In the spot market, affected by expectations for production cuts at downstream ferrochrome plants and inventory at high levels at ports, traders faced greater shipment pressure, and quotations from some small and medium-sized ore traders loosened slightly. Market transactions were mainly small lots for rigid demand, and the overall trading atmosphere was subdued. On the futures side, quotations from major overseas mines remained firm. 40-42% South African concentrate held at $318/mt, while Zimbabwean concentrate was steady at $375/mt; Turkish concentrate remained quoted at $395/mt. Strong uncertainty in the international situation and rising ocean freight rates pushed up the cost of chrome ore arriving at port, supporting chrome ore prices. However, affected by market uncertainty, buyers in China were relatively cautious in making purchases and mainly waited to see this week's offers from major mines.