[SMM Chromium Weekly Review] Weak Demand Performance, Market Remained in the Doldrums

On April 3, 2026, high-carbon ferrochrome prices saw no adjustment, with quotations in Inner Mongolia holding flat at 8,600-8,650 yuan/mt (50% metal content).

This week, the overall trading sentiment in the ferrochrome market weakened, and retail quotations edged down by 50 yuan/mt (50% metal content). Cost side, spot chrome ore prices pulled back, while futures prices held steady. The risk of negative margins for ferrochrome producers eased, but the industry still faced relatively high production cost pressure, and with a willingness to hold prices firm, the price cut was relatively small. Demand side, although downstream steel mills maintained high production schedules, their own raw material inventory was relatively sufficient, so purchases were mainly limited to just-in-time spot orders, with limited trading activity. Supply side, ferrochrome production continued to fluctuate at highs, with limited incremental output. Considering the limited extent of ferrochrome production resumptions outside China, imported ferrochrome is expected to remain at low levels in the short term, with no significant impact from inflows. China’s ferrochrome supply-demand relationship is expected to gradually transition from surplus to a tight balance.

Raw material side, on April 3, 2026, spot chrome ore prices held steady, while futures prices remained firm. At Tianjin Port, 40-42% South African concentrate, 40-42% Turkish lumpy chrome ore, and 48-50% Zimbabwean concentrate were unchanged from the previous trading day. On the CIF futures side, the latest offer for 40-42% South African concentrate was flat at $318/mt.

This week, the chrome ore market remained in the doldrums, with spot prices pulling back, futures tending to stabilize, and overall trading activity staying subdued. In the spot market, inventory at high levels increased shipment pressure on traders, and spot quotations loosened. Meanwhile, news that downstream ferrochrome plants planned production cuts and maintenance weighed on market confidence. In addition, with market participants mainly consuming their existing chrome ore inventory, purchase willingness was weak and most adopted a wait-and-see stance, so chrome ore transactions were slightly sluggish during the week. On the futures side, on the futures side, the latest quotation from the most-traded overseas mine for 40-42% South African concentrate held flat at $318/mt. Heightened uncertainty in the international situation, coupled with South African fuel prices surging to record highs, pushed up chrome ore mining and transportation costs, supporting quotations. However, confidence among buyers in China remained unstable, and purchases were relatively cautious, as they waited for ferrochrome production adjustments to be implemented before making further plans.