[SMM Chrome Daily Review] Ferrochrome Market Remains Strong and Stable, Chrome Ore Market Holds Prices Firm with an Upward Outlook

On January 19, 2026, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,350-8,500 yuan/mt (50% metal content); in Sichuan and north-west China, the ex-factory price was 8,400-8,550 yuan/mt (50% metal content); in east China, offers for high-carbon ferrochrome were 8,550-8,650 yuan/mt (50% metal content), flat MoM from the previous trading day. For imported material, offers for Indian high-carbon ferrochrome were 8,500-8,600 yuan/mt (50% metal content); offers for Kazakh high-carbon ferrochrome were 9,100-9,200 yuan/mt (50% metal content), flat MoM from the previous trading day.

The ferrochrome market operated steadily during the day, as it entered the steel mill tender pricing cycle, with most producers adopting a wait-and-see stance. The downstream stainless steel market remained firm in the short term, which led to relatively optimistic expectations among producers regarding the new round of tender prices from mainstream steel mills. However, considering the approaching Chinese New Year, stainless steel production may see cuts, while ferrochrome production continues to hover at highs, resulting in a slight surplus overall. Therefore, the room for price increases may be limited. At the retail level, tight supply and continuously rising chrome ore prices have increased ferrochrome production costs, and producers' willingness to hold prices firm remains strong. The ferrochrome market is expected to be generally stable with a slight rise in the near term.

Raw material side, on January 19, 2026, spot offers for 40-42% South African concentrate at Tianjin Port were 54.5-55.5 yuan/mtu; 40-42% South African raw ore were 50-52.5 yuan/mtu; 46-48% Zimbabwean chrome concentrate were 57.5-58.5 yuan/mtu; 48-50% Zimbabwean chrome concentrate ore were 59-60 yuan/mtu; 40-42% Turkish chrome lump ore were 61-63 yuan/mtu; 46-48% Turkish chrome concentrate were 63-64 yuan/mtu, up 0.5-1 yuan/mtu MoM from the previous trading day. For futures, the latest offer for 40-42% South African concentrate was $280/mt.

During the day, spot chrome ore offers continued to rise, with traders holding prices firm and reluctant to sell. Downstream, winter stockpiling for ferrochrome has gradually begun, leading to increased inquiries and purchase activities, but high-end transactions await further follow-up. Zimbabwe's chrome ore taxation, coupled with congestion fees at Beira Port, has further increased the landed cost of chrome ore, boosting market bullish sentiment. Meanwhile, floods in South Africa are expected to affect subsequent shipments, and chrome ore supply is projected to decline. Port inventories of chrome ore have decreased, easing sales pressure on traders, and chrome ore prices are expected to maintain an upward trend in the short term. For futures, offers for South African concentrate from major overseas mines rose sharply by $12 to $280/mt, bolstering market confidence, and traders' purchase willingness and inquiry activity became prominent. With favorable downstream market performance, traders' psychological price level for chrome ore futures has risen to the $295-300 range. Subsequent attention should be paid to whether the strong performance of the stainless steel and ferrochrome markets can be sustained, as well as changes in chrome ore export policies and arrival volumes.