[SMM Chromium Weekly Review] Market Showed Slight Weakness, Trading Sentiment Remained Subdued

On April 10, 2026, high-carbon ferrochrome prices edged down, with quotes in Inner Mongolia at 8,500-8,600 yuan/mt (50% metal content).

The ferrochrome market was in the doldrums this week, with moderate trading activity and most participants adopting a wait-and-see stance. Cost side, chrome ore had room for downward adjustment due to port inventory at high levels, easing the risk of inverted ferrochrome production costs; however, macro uncertainties remained strong, chrome ore prices outside China stayed firm, and producers still faced significant cost pressure, limiting the extent of price adjustments. Demand side, stainless steel production schedules remained high but actual procurement demand weakened, and steel mill tender prices fell short of expectations, dampening market confidence, with some producers making minor price concessions to facilitate shipments. Supply side, northern Inner Mongolia may face tight electricity supply in April, coupled with producers' maintenance and production cut plans, ferrochrome production may decline, and overall supply and demand are expected to maintain a tight balance. Markets outside China, South Africa's special electricity pricing policy has yet to be implemented, and the layoff process at major chrome enterprises has been delayed, with limited short-term impact on China. The ferrochrome market is expected to remain in the doldrums, with attention on steel mill inventory digestion and ferrochrome procurement.

Raw material side, on April 10, 2026, chrome ore spot prices held steady, and futures prices remained firm. At Tianjin port, 40-42% South African fines, 40-42% Turkish chrome lump ore, and 48-50% Zimbabwean fines were flat from the previous trading day; on the CIF futures front, the latest offer for 40-42% South African fines was unchanged at $318/mt.

The chrome ore market held steady this week, with limited adjustments in spot and futures prices. Spot side, the structural divergence in port inventory remained unresolved, with ample supply of South African fines and strong warehouse withdrawal pressure; traders were willing to adjust prices, but downside room was limited given support from high-priced futures going forward; mainstream branded chrome ore saw tight spot supply, with strong sentiment to hold prices firm, remaining largely stable. Demand side, ferrochrome producers saw narrowing profit margins, with many having production cut plans, weakening procurement demand for chrome ore; transactions were mostly small essential purchases with sentiment to push for lower prices. Overall trading sentiment was subdued, with most traders adopting a wait-and-see approach. Futures side, overseas market quotes remained firm. Weekly spot order prices for South African fines held steady at $318/mt. Although Middle East conflicts showed signs of easing, ocean freight rates remained elevated in the short term, keeping chrome ore delivered costs relatively high and supporting futures prices to stay high. Affected by fear of high prices and weak demand, most participants maintained a cautious wait-and-see stance with no large-scale position building or purchase activity, and the chrome ore market is expected to continue in a stalemate in the near term.