[SMM Chrome Daily Review] Prices Continue to Decline as Loose Supply Weakens the Market

On May 19, 2026, retail quotations for high-carbon ferrochrome remained unchanged, with Inner Mongolia high-carbon ferrochrome steady at 8,300-8,400 yuan/mt (50% metal content); low- and micro-carbon ferrochrome quotations were adjusted down by 100 yuan WoW to 13,400-13,600 yuan/mt (50% metal content).

Intraday, bearish sentiment was prevalent in the ferrochrome market. Constrained by persistently weakening actual purchase demand from downstream stainless steel, coupled with a gradual decline in chrome ore prices driving down ferrochrome costs, ferrochrome producers lacked confidence, with widespread bearish expectations, and continued to lower retail quotations. As the new round of steel mill tender pricing cycle approaches, market participants mostly expect next month's steel mill tender price for high-carbon ferrochrome from mainstream steel mills to remain flat, while some producers anticipate a reduction of 50-100 yuan/mt (50% metal content). In addition, affected by weakening high-carbon ferrochrome prices, low- and micro-carbon ferrochrome quotations were adjusted down accordingly. The ferrochrome market overall remains in an oversupply state and is expected to stay in the doldrums in the near term.

Raw material side, on May 19, 2026, spot chrome ore quotations were lowered, while futures fluctuations were limited. At Tianjin port, 40-42% South African fines, 40-42% Turkish lumpy ore, and 48-50% Zimbabwean fines quotations were down by 0.5 yuan/mtu from the previous trading day. On the CIF futures front, the latest quotation for 40-42% South African fines was $305/mt.

Intraday, chrome ore market quotations fell further. Spot side, chrome ore port arrivals stayed high, and port inventory is unlikely to pull back in the near term. Chrome ore suppliers saw notably weakening confidence, with many making concessions on shipments, and quotations continued to decline. Meanwhile, downstream ferrochrome producers mostly adopted a wait-and-see attitude, and under a "bearish rather than bullish" mindset, recent inquiry and purchase activities were limited, with actual transactions remaining sluggish. At the same time, overseas chrome ore prices showed a downward trend, weakening support for domestic ore prices, with the overall market remaining in the doldrums. Futures side, the weekly quotation from major South African fines mines outside China was adjusted down by $13 WoW to $305/mt, and quotations for other categories of chrome ore also pulled back accordingly. Currently, traders still hold bearish expectations for future ore prices, with purchase operations being very cautious, mostly limited to rigid demand transactions, and overall wait-and-see sentiment remains strong. Looking ahead, chrome ore supply is expected to remain ample, with downside room for further fluctuations downward in the near term, as the market mainly awaits next month's steel mill tender pricing.