[SMM Chromium Daily Review] Prices Saw Slight Correction, Market Trading Remained Sluggish

On April 13, 2026, high-carbon ferrochrome prices edged down, with quotes in Inner Mongolia at 8,500-8,600 yuan/mt (50% metal content).

The ferrochrome market was in the doldrums during the day, with trading activity at the beginning of the week continuing the previous sluggish trend. Cost side, spot chrome ore prices declined slightly, reducing the risk of producers operating at a loss, but overall costs stayed high. Producers remained willing to hold prices firm, limiting the downside for ferrochrome prices. Demand side, downstream stainless steel production schedules remained high, but actual purchase demand was lackluster, market confidence was insufficient, and the market held expectations of a flat tender price from mainstream steel mills for the next month. Supply side, ferrochrome production in northern Inner Mongolia may edge down slightly due to tight electricity supply. Combined with producers' maintenance and production cut plans, overall supply is expected to decrease to some extent, maintaining a tight balance. Markets outside China, South African power utility Eskom officially reached a 62c/kWh electricity price agreement with major chrome companies, pending approval from the National Energy Regulator of South Africa (Nersa). Follow-up will continue on the specific progress of ferrochrome production resumptions in South Africa. The ferrochrome market is expected to move sideways in the near term.

Raw material side, on April 13, 2026, spot chrome ore prices held steady, and futures prices remained firm. At Tianjin port, 40-42% South African fines, 40-42% Turkish chrome lump ore, and 48-50% Zimbabwean fines were flat from the previous trading day. On the CIF futures front, the latest offer for 40-42% South African fines was flat at $318/mt.

The chrome ore market was in the doldrums at the beginning of the week, with spot prices showing a downward trend while overseas futures prices held steady at high levels. Spot side, port inventory stayed high with notable structural differentiation. South African fines were in ample supply, but downstream ferrochrome producers showed insufficient purchase willingness. Traders faced strong pressure on shipments, with some making minor price concessions to facilitate sales. Mainstream branded chrome ore remained tight in supply, and supported by high forward spot prices, traders maintained strong sentiment to hold prices firm. Futures side, overseas market offers remained firm, with the latest offer for 40-42% South African fines flat at $318/mt. However, high asking prices made transactions relatively difficult, and most market participants adopted a wait-and-see approach. Affected by fear of high prices and weak demand, there were no large-scale position-building or purchase activities. The chrome ore market is expected to remain in a stalemate in the near term.