[SMM Chrome Weekly Review] Cost Support and Positive Sentiment Drive Ferrochrome and Chrome Ore to Hold Up Well

On January 23, 2026, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,400-8,500 yuan/mt (50% metal content); in Sichuan and north-west China, the ex-factory price of high-carbon ferrochrome was 8,400-8,600 yuan/mt (50% metal content); in east China, the offer price for high-carbon ferrochrome was 8,550-8,650 yuan/mt (50% metal content), flat WoW; for imported ferrochrome, the offer price for Indian high-carbon ferrochrome was 8,500-8,600 yuan/mt (50% metal content); the offer price for Kazakh high-carbon ferrochrome was 9,100-9,200 yuan/mt (50% metal content), flat WoW.

This week, the ferrochrome market was generally stable with a slight rise, and retail ferrochrome offers rose slightly by 25 yuan/mt (50% metal content), significantly boosted by the downstream stainless steel market. At the beginning of the week, Tsingshan and TISCO announced the February steel mill tender prices for high-carbon ferrochrome at 8,245 and 8,045 yuan/mt (50% metal content), up 50 yuan WoW, in line with previous bullish expectations, stabilizing market confidence. Meanwhile, stainless steel futures surged significantly, spot transactions improved, driving purchase willingness for ferrochrome, demand increased, and prices rose. At the same time, raw material chrome ore prices continued to rise, production costs kept increasing, the bottom support for ferrochrome prices was obvious, producers had strong willingness to hold prices firm, and the ferrochrome market is expected to hold up well in the short term.

Raw material side, on January 23, 2026, the spot offer for 40-42% South African fines at Tianjin Port was 56-57.5 yuan/mtu; the offer for 40-42% South African raw ore was 51-53 yuan/mtu; the offer for 46-48% Zimbabwean chrome concentrate was 58.5-59.5 yuan/mtu; the offer for 48-50% Zimbabwean chrome concentrate was 59.5-60.5 yuan/mtu; the offer for 40-42% Turkish chrome lump ore was 63-64 yuan/mtu, the offer for 46-48% Turkish chrome concentrate was 64-65 yuan/mtu, up 1-1.25 yuan/mtu WoW; on the futures side, the latest offer for 40-42% South African fines was $287/mt, up $7 WoW.

This week, the chrome ore market continued its upward trend, with both futures and spot prices rising significantly. Spot side, positive downstream sentiment transmitted upwards, coupled with the release of winter procurement demand from ferrochrome producers, inquiries increased, and trading activity rose. Mainstream lump ore spot supply was tight, shipments of Zimbabwean fines were restricted, low-priced South African fines were basically cleared, and with supply tightening, traders had a strong sentiment to hold prices firm, and offers continued to rise. Futures side, overseas main mines raised their offers, considering the strong market bullish expectations, traders' purchase enthusiasm increased, therefore there were volume control operations in the overseas market, and no large-volume concentrated transactions occurred in futures. Overall, the chrome ore market is expected to maintain a strong operating trend in the short term, and subsequent attention is still needed on whether the strong operating trends of stainless steel and ferrochrome can continue, as well as changes in chrome ore export policies and arrival situations.