[SMM Chromium Daily Review] Ore Prices Continue to Decline, Market Expectations Are Pessimistic

On June 17, 2026, retail quotations for high-carbon ferrochrome were temporarily stable, with Inner Mongolia high-carbon ferrochrome at 8,200-8,300 yuan/mt (50% metal content).

During the day, the ferrochrome market was steady but still in the doldrums, with retail quotations inching lower. The downstream stainless steel market saw a slight correction, as the boost from macro news had largely been released, leaving limited momentum for further gains. Coupled with the off-season dampening end-use demand, steel mills remained cautious in raw material procurement, and inquiries and transactions were lackluster, offering limited support to ferrochrome prices. Focus will be on subsequent stainless steel production cuts. On the supply side, power shortages in Inner Mongolia had limited impact on ferrochrome production. Overall output remained high, continuing the previous surplus trend and weighing on ferrochrome prices. On the cost side, chrome ore entered a downward trajectory, with both futures and spot prices falling simultaneously. Ferrochrome production costs declined, and producers retained some profit margins, with most waiting on the sidelines for next month's steel mill tender prices. In the short term, the ferrochrome market is expected to mainly stay in the doldrums.

On the raw material side, on June 17, 2026, quotations at Tianjin port for 40-42% South African fines, 40-42% Turkish lumpy ore, and 48-50% Zimbabwean fines each fell 0.5 yuan/mtu from the previous trading day. On the CIF futures front, the latest quotation for 40-42% South African fines was $280/mt.

During the day, chrome ore market quotations continued to edge lower. At the spot level, port inventories remained high, and mounting shipment pressure drove traders to sell at lower prices. However, downstream ferrochrome plants mostly purchased as needed without centralized stockpiling, and inquiries often involved pushing for lower prices. Meanwhile, high-priced chrome ore arrivals recently raised holding costs, leaving traders reluctant to offer deep discounts. The tug-of-war between sellers and buyers intensified, and actual transactions were limited. On the futures side, the mainstream overseas mine quotation for 40-42% South African fines was $280/mt, down $5 MoM, largely in line with prior market expectations. However, the oversupply in chrome ore remained hard to change, and with expectations of "only looking at downside, not upside," purchases were limited. In the short term, the chrome ore market is expected to mainly stay in the doldrums.