[SMM Chromium Daily Review] Demand Constrained, Prices Declining

On June 9, 2026, retail quotations for high-carbon ferrochrome edged lower, with Inner Mongolia prices at 8,250-8,300 yuan/mt (50% metal content).

The ferrochrome spot market was in the doldrums during the day, lacking support to hold prices firm, as producers lowered their retail quotations by 50 yuan/mt (50% metal content). Demand side, downstream stainless steel has entered the traditional consumption off-season, with end-use demand performing weakly. Steel mill profits narrowed, and their willingness to purchase raw material ferrochrome was notably low. The positive impact of mainstream steel mills’ June tender prices was limited after a rollover, while other steel mills’ tender prices declined to varying degrees recently, dampening market confidence and leading retail quotations to drift lower. Cost side, spot chrome ore prices continued to fall, and smelting cost support for ferrochrome softened somewhat, further intensifying producers’ willingness to sell at lower prices. The ferrochrome market will stay under pressure in the short term. Moreover, the ferrochrome surplus is unlikely to ease quickly, continuing to weigh on prices, and market participants largely have bearish expectations for next month’s steel mill tenders. The ferrochrome market is expected to mainly move sideways in the short term.

Raw materials, on June 9, 2026, quotations at Tianjin port for 40-42% South African fines, 40-42% Turkish lumpy ore, and 48-50% Zimbabwean fines were flat compared with the previous trading day. On a CIF futures basis, the latest quotation for 40-42% South African fines was $290/mt.

The chrome ore market was in the doldrums during the day, with prices divergent and few actual deals concluded. Spot market, port inventories showed no downside room for now, and traders remained under persistent selling pressure, with quotations for South African fines continuing a slow downtrend. Downstream ferrochrome plants showed limited purchasing interest. Although mainstream chrome ore supply was tight, support for holding prices firm was insufficient due to overall weak demand, and quotations were lowered. Futures market, the most-traded mines outside China quoted $290/mt for South African fines, but traders showed little enthusiasm for purchasing, mostly waiting to see how downstream demand releases and the next round of quotations evolve. Bearish expectations were relatively strong, and actual transactions were thin. Buyers and sellers were mostly locked in a stalemate, and the market is expected to remain in a weak sideways pattern in the short term.