[SMM Chrome Daily Review] Overseas Market Prices Lowered, Sluggish Trading and Weak Market

On May 20, 2026, high-carbon ferrochrome retail quotations saw slight adjustments. Inner Mongolia high-carbon ferrochrome held steady at 8,250-8,400 yuan/mt (50% metal content); low- and micro-carbon ferrochrome quotations were down 50 yuan WoW to 13,300-13,600 yuan/mt (50% metal content).

The ferrochrome market continued in the doldrums during the day. Downstream demand remained sluggish, with poor purchase inquiries. Most participants adopted a wait-and-see approach pending next month's steel mill bidding prices, with mainstream expectations of flat pricing and some producers slightly bearish. Cost side, chrome ore overseas market quotations were cut again, with frequent low-price spot cargo dumping, pushing ferrochrome costs lower and weakening support, leaving producers notably lacking in confidence. Additionally, according to China Customs data, China's ferrochrome imports edged up to 145,100 mt in April 2026. The impact of ex-China ferrochrome production resumptions was gradually feeding through to China. Combined with China's ferrochrome production staying high with expectations of further increases, the surplus issue will weigh on ferrochrome price performance going forward, maintaining an in-the-doldrums trend in the short term.

Raw material side, on May 20, 2026, Tianjin port 40-42% South African fines, 40-42% Turkish lumpy ore, and 48-50% Zimbabwean fines quotations were down 0.25 yuan/mtu from the previous trading day. On the CIF futures front, the latest quotation for 40-42% South African fines was $300/mt.

Chrome ore futures and spot quotations fell further during the day. Spot side, chrome ore shipments stayed high at 2.8 million mt, with concentrated port arrivals recently, making a short-term pullback in port inventory unlikely. According to China Customs data, China's total chrome ore imports in April 2026 were 2.3278 million mt, with no adjustment to the loose supply pattern. Ore suppliers' confidence weakened notably, with frequent concession-based shipments and continued quotation cuts. Meanwhile, downstream ferrochrome plants maintained a strong wait-and-see attitude. Under a "bearish rather than bullish" mentality, recent purchase inquiries were limited, with insufficient actual transactions, and both sides remained in a stalemate. Futures side, the major South African fines overseas mine's weekly quotation was down $5 WoW to $300/mt, with other categories of chrome ore quotations also pulling back accordingly. Currently, traders still hold bearish expectations for future ore prices, exercising extreme caution in purchases, mostly transacting on a just-in-need basis, with strong wait-and-see sentiment across the market. Looking ahead, chrome ore supply is expected to remain in a loose pattern, with downside room for further fluctuation in the short term, as the market awaits next month's steel mill bidding prices.