[SMM Chromium Daily Review] Market Expectations Pessimistic, Transactions Remain Weak

Published: Jun 16, 2026 17:55

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[SMM Chrome Daily Review: Market Expectations Pessimistic, Transactions Continue Weak] June 16, 2026 – Ferrochrome and chrome ore markets fluctuate slightly...

On June 16, 2026, retail quotations for high-carbon ferrochrome edged slightly lower, with Inner Mongolia high-carbon ferrochrome at 8,200-8,300 yuan/mt (50% metal content).

During the day, the ferrochrome market remained in the doldrums, with retail quotations down 25 yuan/mt (50% metal content) MoM. The downstream stainless steel market was lifted by macro news, with futures showing an upward trending attempt, and spot transactions recovered somewhat. However, the overall market faces many uncertainties, being in the traditional consumption off-season. Steel mills remained cautious in raw material procurement, limiting demand release. Supply side, ferrochrome producers were mostly fulfilling long-term contract orders, leaving limited spot cargo for retail. Overall production stayed high, making a surplus unavoidable. Producers expected the steel mill tender price for next month to fall. Cost side, chrome ore prices drifted lower, steadily reducing ferrochrome production costs, which further weakened cost support for prices.

On the raw material side, on June 16, 2026, at Tianjin port, offers for 40-42% South African fines, 40-42% Turkish lump ore, and 48-50% Zimbabwean fines were flat from the previous trading day. On the CIF futures front, the latest offer for 40-42% South African fines stood at $285/mt.

During the day, chrome ore market offers adjusted slightly. On the spot side, chrome ore prices were generally stable with slight fall; mainstream grades, particularly Zimbabwean chrome ore, drifted slightly lower. Port inventories remained at very high levels, unlikely to be digested in the short term. Additionally, lower offers from overseas mines intensified bearish expectations. With a mindset of expecting further falls rather than rises, actual inquiries and transactions were sluggish, as participants mostly awaited clearer price trends. On the futures side, offers for 40-42% South African fines from major overseas mines were lowered by $5 MoM to $285/mt. The overall market held relatively strong bearish expectations, awaiting fresh price guidance this week. It is expected that the chrome ore market will remain mainly in a sluggish doldrums pattern in the near term.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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