[SMM Chromium Daily Review] Post-Holiday Market Remained Stable, Trading Activity Was Limited

On May 6, 2026, retail quotations for high-carbon ferrochrome remained unchanged, with Inner Mongolia high-carbon ferrochrome at 8,400-8,550 yuan/mt (50% metal content).

On the first day after the holiday, the ferrochrome market operated steadily. Most ferrochrome producers were still returning from the holiday, with limited trading activity and a predominantly wait-and-see stance, awaiting the release of downstream demand. Stainless steel futures continued to climb, driving up spot quotations and transactions. Steel mill profits remained relatively favorable, with planned production stable at historical highs and edging up slightly. Ferrochrome producers maintained certain optimistic expectations for future prices, with primary attention on the progress of production resumptions at South African ferrochrome operations outside China and the rollout of new capacity in China. The ferrochrome market is expected to remain largely stable in the near term.

Raw material side, on May 6, 2026, chrome ore spot prices remained unchanged, while futures prices stayed firm. At Tianjin port, quotations for South African fines (40-42%), Turkish lump ore (40-42%), and Zimbabwean fines (48-50%) were flat compared with the previous trading day. On the CIF futures front, the offer price for South African fines (40-42%) held steady at $318/mt.

The chrome ore market operated steadily during the day. Constrained by sufficient pre-holiday stockpiling, ferrochrome producers showed limited purchase willingness on the first day after the holiday, with overall inquiry activity remaining mediocre. Spot side, pre-holiday chrome ore port inventory rebounded to a high of 4 million mt, exerting certain pressure on trader shipments. Meanwhile, the support from rising steel mill tender prices for high-carbon ferrochrome had largely dissipated. The current chrome ore market was characterized mainly by a tug-of-war between sellers and buyers, with heavy wait-and-see sentiment. Futures side, cost pressure from electricity and fuel remained significant, supporting overseas mines in maintaining elevated quotations. The offer price from major South African mines for 40-42% fines held steady at $318/mt for over a month. However, traders harbored a certain fear of high prices, resulting in weak purchase willingness, with transactions mostly conducted through long-term contracts. The chrome ore market is expected to maintain strong futures performance and stable spot operations in the near term.