[SMM Chromium Daily Review] Weak Market Due to Insufficient Demand, Chromium Product Prices Decline

On May 7, 2026, retail quotations for high-carbon ferrochrome edged down slightly, with Inner Mongolia high-carbon ferrochrome at 8,400-8,500 yuan/mt (50% metal content).

The ferrochrome market performed weakly during the day. Constrained by insufficient purchase willingness from downstream steel mills, overall inquiry and transaction activity remained subdued, and retail quotations edged down by 25 yuan/mt (50% metal content). Stainless steel planned production stayed high, but ferrochrome production is expected to increase, pushing ferrochrome supply and demand gradually out of balance, with a certain degree of oversupply emerging and intensifying downward pressure on ferrochrome. In addition, ex-China ferrochrome supply increased somewhat. South Africa's temporary electricity price policy is nearing the end of its approval period, with major chrome enterprises having production resumption plans. Zimbabwe also has new capacity coming online, and the inflow of imported ferrochrome is expected to weigh on the domestic ferrochrome market.

Raw material side, on May 7, 2026, chrome ore spot prices adjusted slightly, while futures prices remained unchanged. Tianjin port 40-42% South African fines were flat compared to the previous trading day; 40-42% Turkish lump ore; 48-50% Zimbabwean fines quotations edged down by 0.5 yuan/mtu from the previous trading day. On the CIF futures front, 40-42% South African fines were offered at $318/mt, unchanged.

The chrome ore market was in the doldrums during the day. Spot side, raw material stocking was sufficient, and ferrochrome producers showed mediocre performance in procurement inquiries, with a desire to bargain down prices. Chrome ore port inventory rebounded to 4 million mt, intensifying shipment pressure on traders. Meanwhile, considering that chrome ore shipments continued at high levels, with supply increasing while demand support remained limited, market participants were not optimistic about the outlook, and wait-and-see sentiment was strong. Futures side, South African fuel prices were raised again, and chrome ore mining and transportation costs continued to rise, supporting major overseas mines in maintaining high offers at $318/mt. However, downstream demand performed poorly, traders harbored fear of high prices, and overall purchase willingness was weak, with transactions mostly limited to long-term contract orders. In the short term, the chrome ore market is expected to maintain a pattern of strong futures performance while spot cargo remains in the doldrums.