[SMM Chrome Daily Review] Ore Prices Drifted Lower, Alloy Market Remained Stable

On June 3, 2026, retail quotations for high-carbon ferrochrome remained unchanged, with Inner Mongolia high-carbon ferrochrome steady at 8,250-8,400 yuan/mt (50% metal content).

The ferrochrome market held stable during the day. The downstream stainless steel market maintained a sideways movement, officially entering the consumption off-season. End-use demand was weak, but steel mills still retained certain profit margins, so there were no significant production cut plans for now, and just-in-time procurement demand for ferrochrome remained stable. Moreover, mainstream steel mills' June tender prices were settled flat, providing short-term support for ferrochrome prices. Supply side, ferrochrome production broke through historical highs, and the surplus issue was gradually reflected in the market; however, considering recent power supply tightness, some ferrochrome producers in Inner Mongolia underwent maintenance and production cuts, so it is necessary to continue monitoring ferrochrome's specific production volume in June. Cost side, chrome ore prices in both domestic and overseas markets declined simultaneously, easing ferrochrome production cost pressure, but price floor support also weakened. The ferrochrome market is expected to remain in the doldrums.

Raw material side, on June 3, 2026, quotations at Tianjin port for 40-42% South African fines, 40-42% Turkish lumpy ore, and 48-50% Zimbabwean fines 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 $290/mt.

The chrome ore market was in the doldrums during the day, with spot and futures quotations both adjusted downward. Spot side, chrome ore port inventory stayed high with notable structural differentiation. South African fine ore supply was in surplus, and with overseas market quotations lowered, traders faced increasing pressure to sell, with many making price concessions. Meanwhile, mainstream-brand chrome ore supply remained relatively limited, with quotations still supported. Demand side, ferrochrome production fluctuated at highs, sustaining rigid demand for chrome ore. Considering the arrival of the rainy season, production resumptions and restocking by south China ferrochrome producers may improve chrome ore liquidity. Futures side, the latest quotation from major South African fine ore mines outside China was $290/mt, down $10 MoM. Although South African ferrochrome has entered a full production resumption phase, the chrome ore oversupply situation is difficult to resolve in the short term. Chrome ore prices are expected to continue to fluctuate downward, awaiting further demand release to drive market sentiment recovery.