[SMM Chrome Daily Review] Ferrochrome Procurement Prices Temporarily Stable, Ore Prices Fell with Inventory at High Levels

On May 29, 2026, retail quotations for high-carbon ferrochrome saw no adjustment, with Inner Mongolia high-carbon ferrochrome holding steady at 8,250-8,400 yuan/mt (50% metal content).

The ferrochrome market remained stable this week. Mainstream steel mills announced flat June tender prices, lending some confidence to the market and providing short-term support for ferrochrome prices. Small and medium-sized steel mills successively entered the market for tender purchases this week, with most transactions driven by rigid demand, and overall trading activity recovered slightly compared to the previous period. Downstream stainless steel production schedules stayed high with no production cut plans, and further restocking demand is expected to be released going forward. However, as the rainy season begins, south China producers are resuming production in a concentrated manner, leading to a notable increase in ferrochrome production. The growing oversupply issue is gradually becoming apparent, limiting ferrochrome price rebounds. In the short term, ferrochrome is expected to maintain a weak supply-demand balance and continue to move sideways.

Raw material side, on May 29, 2026, quotations at Tianjin port for 40-42% South African fines, 40-42% Turkish lump ore, and 48-50% Zimbabwean fines were down 0.5 yuan/mtu from the previous trading day. On the CIF futures front, the latest quotation for 40-42% South African fines stood at $300/mt.

The chrome ore market was in the doldrums this week, with spot quotations continuing to decline while futures prices remained relatively stable. Spot side, chrome ore port inventory stayed high, and traders faced increasing shipment pressure, leading to frequent low-price concession sales. Downstream ferrochrome producers showed insufficient willingness to purchase, mostly inquiring only for rigid-demand restocking, resulting in a stalemate in the tug-of-war between sellers and buyers. The chrome ore market is expected to remain in the doldrums in the short term. Futures side, major ex-China South African fines mines maintained quotations at $300/mt this week, with the flat steel mill tender price providing bottom support. Futures and spot prices gradually converged, and combined with ferrochrome production staying high, downstream ferrochrome producers increased direct purchases recently, while traders mostly adopted a wait-and-see approach, with transactions remaining limited.