[SMM Chromium Daily Review] Wait-and-See Sentiment Prevails, Market in the Doldrums

On May 15, 2026, retail quotations for high-carbon ferrochrome remained unchanged, with Inner Mongolia high-carbon ferrochrome at 8,350-8,400 yuan/mt (50% metal content).

This week, the ferrochrome market was dominated by wait-and-see sentiment, with overall trading activity relatively sluggish. Ferrochrome retail quotations were down 25 yuan/mt (50% metal content) WoW. Supply side, ferrochrome production remained at high levels. South China gradually entered the transitional period between dry and rainy season, with electricity prices pulling back notably, reducing local ferrochrome production costs. Producers that had previously cut production due to inverted electricity prices gradually resumed operations. China's ferrochrome production is expected to further increase, with the oversupply issue gradually feeding back into the market, exerting some downward pressure on ferrochrome prices. Cost side, chrome ore prices drifted lower, overseas market quotations weakened, and traders lacked confidence, pushing ferrochrome production costs lower and weakening bottom support. The ferrochrome market is expected to remain in the doldrums in the near term.

Raw material side, on May 15, 2026, spot chrome ore saw limited fluctuations, while futures quotations declined. Tianjin port 40-42% South African fines, 40-42% Turkish lump ore, and 48-50% Zimbabwean fines quotations were down 0.5 yuan/mtu from the previous trading day. On the CIF futures front, the latest quotation for 40-42% South African fines was $305/mt.

This week, the chrome ore market was in the doldrums, with spot and futures prices declining in tandem. On the spot front, chrome ore port inventory remained at high levels without notable improvement, limiting traders' willingness to hold prices firm. Some traders with lower holding costs chose to offer concessions on shipments, driving spot chrome ore prices to edge down. In addition, downstream ferrochrome plants mostly adopted a wait-and-see attitude, with limited purchase willingness and moderate trading activity. Moreover, chrome ore overseas market quotations moved lower, and Chinese market participants lacked confidence, with purchases being rather cautious. On the futures front, the weekly quotation from major overseas mines was down $13 WoW to $305/mt. Currently, traders still held bearish expectations for future chrome ore prices, with purchase operations being very cautious, mostly limited to rigid demand transactions. Overall, wait-and-see sentiment was strong in the market.