[SMM Chromium Daily Review] Weak Demand Drove Prices Down, Chromium Market Clearly Under Pressure

On April 17, 2026, retail quotations for high-carbon ferrochrome were slightly adjusted, with Inner Mongolia high-carbon ferrochrome quoted at 8,400-8,550 yuan/mt (50% metal content).

The ferrochrome market fluctuated downward this week. Long-term contract side, as the steel mill tender pricing cycle began, producers mostly adopted a wait-and-see approach. Constrained by sluggish purchasing demand from downstream stainless steel mills, coupled with declining chrome ore prices and weakening cost support, most market participants were bearish on the new round of steel mill tender prices, with a flat price becoming the mainstream expectation. Retail side, to recover funds, producers offered concessions on shipments, with quotations down 75 yuan/mt (50% metal content) WoW. Under weak demand conditions, electricity maintenance events recently occurred in northern Inner Mongolia, affecting ferrochrome production at some producers. Ferrochrome production this month may decline, with the overall market maintaining a tight balance. Overseas market, South Africa's Eskom officially reached a 62 cents/kWh electricity price agreement with major ferrochrome producers Glencore-Merafe and Samancor. The energy regulator (Nersa) indicated that it will complete the approval decision by the end of June. Overall, in the short term, production resumptions of South African ferrochrome remain limited, with insignificant impact on inflows to China. China's ferrochrome market is expected to continue operating in the doldrums, with further adjustments to be made after the new round of steel mill tender pricing.

Raw material side, on April 17, 2026, chrome ore spot prices were stable, while futures prices remained firm. Tianjin port quotations for 40-42% South African fines, 40-42% Turkish lump ore, and 48-50% Zimbabwean fines were flat from the previous trading day. CIF futures, 40-42% South African fines were quoted flat at $318/mt this week.

The chrome ore market was in the doldrums this week, with weak demand and sluggish transactions. Spot prices edged lower, while overseas futures remained stable. Spot side, port inventory of South African fines and Zimbabwean fines stayed at elevated levels, with traders facing high warehouse withdrawal pressure. Downstream ferrochrome producers mostly remained on the sidelines, with scarce inquiry and purchase demand and a desire to bargain down prices. The tug-of-war between sellers and buyers remained stagnant, and poor expectations pushed chrome ore prices lower. However, lump ore sources were tight, traders held prices firm, and prices remained relatively resilient. Futures side, the latest quotation from major overseas mines for 40-42% South African fines held flat again at $318/mt, while fuel and freight prices were raised, providing notable cost support for ex-China chrome ore. However, as the steel mill tender pricing cycle was underway, China's producers lacked confidence and made no large-scale stocking or purchase moves, resulting in limited chrome ore transactions. The market is expected to continue to fluctuate downward in the short term.