[SMM Chrome Daily Review] Ferrochrome Market Sentiment Rises, Chrome Ore Spot and Forward Prices Increase

On January 7, 2026, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,150-8,250 yuan/mt (50% metal content); in Sichuan and north-west China, the ex-factory price was 8,200-8,350 yuan/mt (50% metal content); in east China, the offer price was 8,300-8,500 yuan/mt (50% metal content), up 50-100 yuan/mt (50% metal content) MoM from the previous trading day. For imported material, the offer price for South African high-carbon ferrochrome was 8,200-8,300 yuan/mt (50% metal content); the offer price for Kazakh high-carbon ferrochrome was 9,000-9,100 yuan/mt (50% metal content), flat MoM from the previous trading day.

During the day, the chrome ore market operated steadily with positive momentum. Downstream stainless steel prices rose significantly, driven by higher nickel prices, which in turn boosted market sentiment and activity in the ferrochrome market. Currently, tight supply of ferrochrome supports firm retail prices, and the stainless steel production schedule for January showed an increase, leading to good expectations among ferrochrome producers for the future market. With relatively attractive production profits, most ferrochrome producers maintained stable operations, keeping overall production at high levels, and many engaged in raw material purchasing. In the short term, ferrochrome prices are expected to have some further upside room, and the market is likely to hold up well.

Raw material side, on January 7, 2026, spot 40-42% South African concentrate at Tianjin port was offered at 53-53.5 yuan/mtu; 40-42% South African raw ore was offered at 48-50 yuan/mtu; 46-48% Zimbabwean chrome concentrate was offered at 54-55 yuan/mtu; 48-50% Zimbabwean chrome concentrate was offered at 55-56 yuan/mtu; 40-42% Turkish chrome lump ore was offered at 59-60 yuan/mtu; 46-48% Turkish chrome concentrate was offered at 60.5-61.5 yuan/mtu, up 0.5 yuan/mtu MoM from the previous trading day. In the futures market, 40-42% South African concentrate was offered at $268-270/mt, up $5/mt MoM.

During the day, the chrome ore market atmosphere was positive. Driven by rising overseas futures offers, domestic spot quotations increased accordingly. To maintain high production levels, ferrochrome producers gradually engaged in inquiries and purchasing activities. The tight supply situation for mainstream lump ore showed no improvement, providing support at the price bottom; Zimbabwean chrome concentrate prices also rose due to increased demand. Overall, supported by demand, the chrome ore market is expected to maintain a steady and positive trend in the short term. It remains to be seen whether the price increase in the downstream stainless steel market will transmit to the ore side. In the futures market, after the Christmas holiday, the new round of offers from major overseas mines for 40-42% South African chrome concentrate increased by $5 to $268/mt, boosting market confidence. Driven by positive expectations for the future market, many traders began stockpiling and inquiring, but overseas suppliers continued to control volume, making actual purchases somewhat difficult. In summary, under the dual influence of demand support and rising futures offers, the short-term positive trend in the chrome ore market is evident, but continued monitoring of the transmission of downstream positive effects is necessary.