[SMM Chrome Daily Review] Ferrochrome Remains Strong and Stable, Chrome Ore Prices Rise

On January 28, 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 was 8,400-8,600 yuan/mt (50% metal content); in east China, the offer price was 8,550-8,650 yuan/mt (50% metal content), flat MoM from the previous trading day. 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 MoM from the previous trading day.

The ferrochrome market operated steadily during the day. Tight supply combined with cost support kept producers firm in holding prices, with little likelihood of a price pullback in the short term. However, downstream stainless steel futures and spot prices retreated, and with the approaching Chinese New Year holiday, news of production cuts emerged, suggesting potential weakening in ferrochrome purchase demand. Meanwhile, new ferrochrome capacity continues to be released, and a subsequent supply surplus may weigh on ferrochrome prices. The market is currently focusing on the pace of new capacity release and the sustainability of downstream stainless steel demand to gauge the future price trend of ferrochrome.

On the raw material side, on January 28, 2026, the spot offer for 40-42% South African concentrate at Tianjin Port was 57-58 yuan/mtu; the offer for 40-42% South African raw ore was 52-54 yuan/mtu; the offer for 46-48% Zimbabwean chrome concentrate was 59-60 yuan/mtu; the offer for 48-50% Zimbabwean chrome concentrate ore was 60-61 yuan/mtu; the offer for 40-42% Turkish chrome lump ore was 64-65 yuan/mtu, and the offer for 46-48% Turkish chrome concentrate was 65-66 yuan/mtu, up 0.5-1.5 yuan/mtu MoM from the previous trading day. In the futures market, the latest offer for 40-42% South African concentrate was $297/mt, up $10 MoM.

During the day, chrome ore futures and spot prices continued to rise. In the spot market, tight supply and high costs fostered some reluctance to sell and firm price sentiment, while another increase in futures prices bolstered trader confidence. However, considering that winter stockpiling demand is largely exhausted, a wait-and-see sentiment is emerging in the market, and expectations for future price trends are cautious. In the futures market, the latest offer from the main mine for South African concentrate was $297/mt, up $10 MoM. Zimbabwe, affected by both mining policies and the rainy season, faces rising costs and higher offers, making local purchases relatively difficult. Futures offers are close to psychological expectations, but traders exhibit some fear of high prices, adjusting their subsequent stockpiling and purchase pace.