【SMM Analysis】Chrome Ferroalloy Output Edges Down in April

News Release: April 30, 2026

According to SMM statistics, China’s high-carbon ferrochrome output in April 2026 fell by 1.28% month-on-month but rose by 24.63% year-on-year, with notable regional divergence. The majority of the monthly output reduction came from Inner Mongolia in northern China. Affected by substation maintenance, ferrochrome producers in Fengzhen faced production restrictions, with output dipping slightly by 1.82%.

In southern regions such as Sichuan, the wet season had not yet arrived, keeping ferrochrome operating rates at a low level. In Guizhou and Guangxi, policy adjustments pushed up electricity prices. Coupled with elevated chrome ore prices and surging smelting costs, producers showed limited willingness to operate, resulting in low overall output.

Fundamentally, ongoing geopolitical tensions kept overseas chrome ore prices firm. Although spot prices edged down, the decline was modest, driving up overall production costs for ferrochrome. On the demand side, mainstream steel mill tender prices for ferrochrome in April settled flat below market expectations. Most steel mills prioritized destocking existing inventories, leading to slow procurement momentum throughout the month and weak overall demand. This dragged retail ferrochrome prices lower and dampened production enthusiasm among ferrochrome manufacturers.

Market Outlook

Ferrochrome output is expected to remain steady at elevated levels and may see a moderate increase going forward. On the demand side, downstream stainless steel futures surged sharply to hit a recent high. Steel mills maintained stable profit margins and kept high production schedules. In addition, new capacity has been put into operation at some steel mills. Combined with continuous inventory drawdowns, ferrochrome procurement demand is set to rise, supporting active production among ferrochrome producers.

Meanwhile, rising steel mill tender prices have boosted market sentiment. Tsingshan Group and TIS announced their May ferrochrome tender prices at 8,495 yuan and 8,295 yuan per 50-base ton respectively, up 100 yuan month-on-month. The risk of cost inversion for ferrochrome producers has eased, profit margins have widened, which will stimulate a slight uptick in ferrochrome output. Furthermore, the upcoming wet season will prompt ferrochrome manufacturers in Sichuan and other southern regions to resume production, which is likely to become a major source of new ferrochrome supply growth.