[SMM Daily Chrome Review] Market Weakness Persists, Overall Expectations Remain Pessimistic

On May 21, 2026, retail quotations for high-carbon ferrochrome remained unchanged, with Inner Mongolia high-carbon ferrochrome steady at 8,250-8,400 yuan/mt (50% metal content).

The ferrochrome market was in the doldrums during the day, with participants mostly watching next month's steel mill tender price. The mainstream view was flat, while some producers had expectations of a slight edge down. With downstream production schedules at high levels, ferrochrome production increased significantly, the surplus issue gradually emerged, the ferrochrome market was under overall pressure, and prices lacked upward support. Meanwhile, cost side, chrome ore prices pulled back, driving costs lower, leaving ferrochrome with insufficient bottom support. The market is expected to maintain a weak trend in the short term.

Raw material side, on May 21, 2026, quotations at Tianjin port for 40-42% South African fines, 40-42% Turkish lump ore, and 48-50% Zimbabwean fines remained flat from the previous trading day. On the CIF futures front, the latest quotation for 40-42% South African fines was $300/mt.

The chrome ore market continued its weak trend during the day. Spot cargo side, high chrome ore inventory continued to exert influence, with suppliers pessimistic about market outlook and mostly offering concessions to facilitate shipments. Downstream ferrochrome plants were watching next month's steel mill tender, and coupled with sluggish actual shipments, had low willingness to purchase raw material chrome ore at offered prices, with market trading activity remaining subdued. In addition, overseas market prices continued to decline, providing insufficient support for China, with overall market sentiment weak, maintaining a fluctuating downward trend. Futures side, the weekly quotation from major South African fines mines outside China was down $5 WoW to $300/mt, and quotations for other types of chrome ore also pulled back accordingly. Currently, traders still hold bearish expectations for future ore prices, with purchase operations being very cautious, mostly limited to rigid demand transactions, and overall wait-and-see sentiment remaining strong. Looking ahead, chrome ore supply is expected to continue its loose pattern, with downside room for further fluctuation downward in the short term, mainly awaiting next month's steel mill tender price.