[SMM Chromium Daily Review] Trading Activity Weakens, Market Operates Steadily

On February 3, 2026, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,500-8,600 yuan/mt (50% metal content); in Sichuan and north-west China, the ex-factory price was 8,500-8,700 yuan/mt (50% metal content); in east China, the quotation for high-carbon ferrochrome was 8,700-8,800 yuan/mt (50% metal content), flat MoM from the previous trading day. For imported ferrochrome, the quotation for Indian high-carbon ferrochrome was 8,600-8,700 yuan/mt (50% metal content); the quotation for Kazakh high-carbon ferrochrome was 9,300-9,500 yuan/mt (50% metal content), flat MoM from the previous trading day.

During the day, the ferrochrome market operated steadily, with a mediocre trading atmosphere and no adjustments to quotations. Entering February, as the Chinese New Year holiday approaches, winter stockpiling demand has largely been released. Affected by the confirmed production cuts in downstream stainless steel, recent inquiry and purchase demand has narrowed. However, rising chrome ore prices have driven up production costs, providing strong support at the bottom of ferrochrome prices. Meanwhile, ferrochrome producers hold limited spot inventory and maintain firm sentiment on holding prices, so the ferrochrome market is expected to operate steadily in the short term.

Raw material side, on February 3, 2026, spot 40-42% South African concentrate at Tianjin Port was quoted at 57-58 yuan/mtu; 40-42% South African raw ore was quoted at 52-54 yuan/mtu; 46-48% Zimbabwean chrome concentrate was quoted at 59-60 yuan/mtu; 48-50% Zimbabwean chrome concentrate ore was quoted at 60-61 yuan/mtu; 40-42% Turkish chrome lump ore was quoted at 64-65 yuan/mtu; 46-48% Turkish chrome concentrate ore was quoted at 65-66 yuan/mtu, flat MoM from the previous trading day. In the futures market, the latest quotation for 40-42% South African concentrate was $297/mt, up $10 MoM.

During the day, retail quotations for chrome ore saw slight increases, with the overall market holding up well. However, considering that winter stockpiling is nearing its end and purchase demand from ferrochrome producers has weakened, market trading activity has decreased, leading to a stalemate in negotiations between buyers and sellers. Additionally, with the approaching Chinese New Year holiday, some traders are engaging in liquidation operations, which to some extent suppresses further price increases for chrome ore. In the futures market, stimulated by the execution of high-priced transactions, weekly quotations from major mines for South African concentrate may still rise; Zimbabwean concentrate futures quotations continue to increase due to mining policy impacts combined with rainy season shipment constraints, making local purchases relatively difficult. Currently, there is some fear of high prices in the chrome ore market, and concentrated transactions are relatively limited. The chrome ore market is expected to maintain a generally stable with slight rise trend.