[SMM Chromium Daily Review] Oversupply and Easing Costs Weigh on Chromium Market Prices Amid Weak Expectations

On May 11, 2026, retail quotations for high-carbon ferrochrome were slightly adjusted, with Inner Mongolia high-carbon ferrochrome at 8,350-8,450 yuan/mt (50% metal content).

At the beginning of the week, the ferrochrome market continued its previous pattern of being in the doldrums, with retail quotations edging down 50 yuan to 8,400 yuan/mt (50% metal content). Downstream stainless steel saw periodic transaction acceptance, futures pulled back, and spot prices followed suit, with overall trading activity remaining mediocre, leading steel mills to be cautious in ferrochrome procurement. Moreover, after major stainless steel mills increased their steel mill tender prices for high-carbon ferrochrome, tender prices from ordinary steel and special steel mills declined to varying degrees, undermining market confidence. In addition, stainless steel production schedules stay high, but the increase in ferrochrome supply is more pronounced, and a notable surplus is expected going forward, capping ferrochrome prices. The ferrochrome market is expected to remain in the doldrums in the near term.

Raw material side, on May 11, 2026, chrome ore spot prices saw limited fluctuations, with futures quotations flat but transactions weakening. At Tianjin port, 40-42% South African fines, 40-42% Turkish lump ore, and 48-50% Zimbabwean fines were quoted flat from the previous trading day. On the CIF futures front, the latest transaction price for 40-42% South African fines was lowered to $310/mt.

Intraday, the ferrochrome market was in the doldrums with low trading activity and insufficient participant confidence. On the spot cargo front, pre-holiday stocking demand had been largely released, and post-holiday downstream purchasing follow-through was insufficient, making it difficult for chrome ore transactions to gain volume. With port inventory at high levels, traders faced significant shipments pressure. Coupled with declining futures transaction prices, support for spot cargo weakened, and the market is expected to remain in the doldrums in the near term. On the futures front, although major ex-China mines maintained their weekly quotations at $318/mt, long-term contract transaction prices were adjusted down $8 WoW to $310/mt. Currently, traders still hold bearish expectations for future chrome ore prices, with purchase operations being very cautious, mostly limited to rigid-demand transactions, and overall wait-and-see sentiment remains strong in the market.