[SMM Chromium Daily Review] Transactions Driven Mainly by Rigid Demand, Market in the Doldrums

[SM May 28, 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. Mainstream steel mills' flat offers provided short-term support for ferrochrome prices, while small and medium-sized steel mills gradually entered the market for purchases, with transactions mainly driven by rigid demand, and the trading atmosphere in the retail market recovered slightly. Downstream stainless steel production schedules stayed high, but the increase in ferrochrome production was more pronounced. The oversupply issue showed no significant improvement, and the ferrochrome market maintained a weak supply-demand balance. The market is expected to continue to move sideways in the near term.

Raw material side, on May 28, 2026, at 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 $300/mt.

The chrome ore market was in the doldrums during the day. Spot side, constrained by high port inventory levels, suppliers edged down their quotations, with many making price concessions to facilitate shipments. Downstream ferrochrome producers had insufficient purchasing demand, mostly consuming raw material inventory on hand as needed, with transactions mainly consisting of small rigid-demand orders. The overall trading atmosphere was rather sluggish, and the market is expected to remain in the doldrums in the near term. Futures side, the latest quotation from major ex-China South African fines mines held steady at $300/mt, and market confidence was somewhat boosted after the steel mill tender price was settled flat. The spread between futures and spot prices narrowed. Combined with ferrochrome production staying high, downstream ferrochrome producers recently increased direct purchases, while traders mostly adopted a wait-and-see stance, with transactions remaining rather limited.