[SMM Chrome Daily Review] Tight Supply of Spot Ferrochrome, Chrome Ore Prices Remain Firm

On January 21, 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 WoW; 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 WoW.

The ferrochrome market held steady during the day. The slight increase of 50 yuan/mt (50% metal content) in the February tender price announced by mainstream steel mills supported ferrochrome producers' sentiment to hold prices firm. Inquiry and purchase activity increased during the winter stockpiling period, but tight spot retail supply further pushed prices to fluctuate at highs. Meanwhile, the downstream stainless steel market performed well, with futures surging significantly, leading to optimistic participant expectations. The ferrochrome market is expected to be generally stable with a slight rise in the short term.

On the raw material side, on January 21, 2026, spot offers for 40-42% South African concentrate at Tianjin port were 54.5-55.5 yuan/mtu; offers for 40-42% South African raw ore were 50-52.5 yuan/mtu; offers for 46-48% Zimbabwean chrome concentrate were 57.5-58.5 yuan/mtu; offers for 48-50% Zimbabwean chrome concentrate were 59-60 yuan/mtu; offers for 40-42% Turkish chrome lump ore were 61-63 yuan/mtu, and offers for 46-48% Turkish chrome concentrate were 63-64 yuan/mtu, up 0.5-1 yuan/mtu WoW. For futures, the latest offer for 40-42% South African concentrate was $280/mt.

Chrome ore market offers saw no adjustments during the day, with traders showing strong sentiment to hold prices firm. Downstream ferrochrome producers' winter stockpiling demand led to increased inquiries and purchases, but recent port arrivals declined, and port inventory dropped, leading to some reluctance to sell among traders and limited concentrated transactions. Mainstream lump ore supply was tight, and Zimbabwean concentrate costs provided support, suggesting a trend for further price increases in offers. For futures, the overseas main mine for South African concentrate had not set a price this week, but with good downstream market performance, traders' psychological price level for chrome ore futures rose to the $295-300/mt range. Subsequent attention should remain on whether the strong performance of the stainless steel and ferrochrome markets can continue, as well as changes in chrome ore export policies and port arrival volumes.