[SMM Chromium Daily Review] Transaction Prices Declined, Chromium Market Weakened Overall

On May 9, 2026, retail quotations for high-carbon ferrochrome remained unchanged, with Inner Mongolia high-carbon ferrochrome at 8,400-8,500 yuan/mt (50% metal content).

The ferrochrome market was sluggish this week, lacking demand support. Combined with easing costs, ferrochrome prices were under pressure, down 50 yuan/mt (50% metal content) WoW. Demand side, overall stainless steel production stayed high, but steel mills showed insufficient purchase willingness for ferrochrome raw materials, with limited inquiry activity and sluggish transactions. Supply side, as the transitional period between dry and rainy season began, some ferrochrome producers in south China successively resumed production, while new capacity in Inner Mongolia in the north largely reached normal production status. Overall ferrochrome production is expected to edge up, and the supply-demand relationship has become somewhat imbalanced, suppressing subsequent ferrochrome price rises. Cost side, chrome ore prices declined in both domestic and overseas markets, ferrochrome production costs shifted lower, weakening price support. Producers lacked confidence, and the ferrochrome market is expected to remain in the doldrums in the near term.

Raw material side, on May 9, 2026, chrome ore spot prices saw slight adjustments, 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 down 0.5 yuan/mtu from the previous trading day. On the CIF futures front, 40-42% South African fines were offered at parity of $318/mt.

The chrome ore market was in the doldrums this week, with prices declining in both domestic and overseas markets. Spot side, raw material stocking was sufficient, and ferrochrome producers showed mediocre performance in procurement inquiries, with a desire to bargain down prices. Chrome ore port inventory continued to accumulate, intensifying shipments pressure on traders. According to SMM data, chrome ore port inventory rose 5.08% WoW to 4.2116 million mt this week. Meanwhile, considering that chrome ore shipments remained high, with supply increasing while demand support was limited, market participants were not optimistic about the outlook, and wait-and-see sentiment was strong. Futures side, South African fuel prices were raised again, and chrome ore mining and transportation costs continued to rise, supporting major ex-China mines in maintaining high quotations of $318/mt. However, downstream demand performed poorly, traders harbored fear of high prices, and overall purchase willingness was weak, with most transactions being long-term contract orders. The latest transaction price had been lowered to $310/mt. The chrome ore market is expected to remain in the doldrums in the near term.