[SMM Chrome Daily Review] Sluggish Trading Keeps Ferrochrome Steady for Now; Ore Prices Drift Lower Amid Inventory at High Levels

On June 2, 2026, retail quotations for high-carbon ferrochrome remained unchanged, with Inner Mongolia high-carbon ferrochrome steady at 8,250-8,400 yuan/mt (50% metal content).

The ferrochrome market remained stable during the day. Currently, China's ferrochrome production has reached a historical peak, with overall supply in a loose state. Combined with the expected increase in imported ferrochrome supply following the implementation of South Africa's preferential electricity price policy, the oversupply supply-demand pattern persists, and ferrochrome prices lack upward momentum. Downstream stainless steel has entered the traditional consumption off-season, with market confidence somewhat insufficient. However, steel mills still maintain certain profits and have not yet seen significant production cuts, keeping ferrochrome purchase demand relatively stable. Ferrochrome prices are expected to remain stable in the short term.

Raw material side, on June 2, 2026, Tianjin port 40-42% South African fines, 40-42% Turkish lump ore, and 48-50% Zimbabwean fines quotations were down 0.5 yuan/mtu from the previous trading day. On the CIF futures front, the latest quotation for 40-42% South African fines was $290/mt.

The chrome ore market was in the doldrums during the day. Spot cargo side, market trading atmosphere was sluggish, with high port inventory levels continuing to pressure suppliers, while downstream ferrochrome plants had limited purchase willingness. Recent inquiries and transactions lacked volume, and spot chrome ore prices may continue to decline. However, considering the significant increase in ferrochrome production, combined with production resumptions at multiple plants in south China during the rainy season, chrome ore demand is expected to rebound going forward. On the futures front, the latest quotation from major ex-China South African fines mines was $290/mt, down $10 MoM. Although South African ferrochrome has entered a full production resumption phase, the chrome ore oversupply pattern is difficult to resolve in the short term. Chrome ore prices are expected to continue to fluctuate downward, awaiting further demand release to drive market sentiment recovery.