Steel Bidding Prices Drop by 200, Chrome Market Running in the Doldrums [SMM Analysis]

Ferrochrome Price Review: The ferrochrome market remained in the doldrums this week. As of June 26, 2026, high-carbon ferrochrome was quoted at 8,100-8,200 yuan/mt (50% metal content) in Inner Mongolia, 8,200-8,300 yuan/mt (50% metal content) in Sichuan and north-west China, and 8,450-8,550 yuan/mt (50% metal content) in east China, down 75 yuan WoW. Kazakhstan-origin high-carbon ferrochrome was quoted at 9,500-9,700 yuan/mt (50% metal content), down 50 yuan WoW. Tsingshan and TISCO announced their July high-carbon ferrochrome procurement tender prices at 8,295 yuan/mt (50% metal content) and 8,095 yuan/mt (50% metal content), respectively, down 200 yuan MoM.

Demand side, the traditional consumption off-season persisted. Downstream stainless steel futures drifted lower, fueling widespread bearish sentiment; steel mills showed limited purchasing interest. Coupled with maintenance and production cuts, overall demand for ferrochrome weakened. Mainstream steel mills’ July tender prices announced during the week were down 200 yuan/mt (50% metal content) MoM, sapping market confidence. Difficulties in selling and soft trading activity kept ferrochrome prices under pressure.

Cost side, chrome ore prices continued to edge lower, steadily reducing spot smelting costs and weakening price support. SMM data showed production costs for ferrochrome in Inner Mongolia this week at around 7,749-7,765 yuan/mt (50% metal content), down 1.19% WoW.

Supply side, high-carbon ferrochrome production in June is expected to stay high. With some margins still intact, ferrochrome producers showed little willingness to cut output significantly. On imports, China imported 131,000 mt of high-carbon ferrochrome in May 2026, down 9.7% MoM and 15.62% YoY. Ferrochrome imports moved sideways in a low, narrow range. The overall supply picture remained in surplus, keeping prices under pressure.

Chrome Ore Price Review: As of June 26, 2026, 40-42% South African chromite concentrate at Tianjin port was quoted at 52.5-53.5 yuan/mtu, down 1 yuan WoW; 48-50% Zimbabwe chromite concentrate was quoted at 55-56 yuan/mtu, down 0.5 yuan WoW; 40-42% Turkish lump ore was quoted at 69-70 yuan/mtu, flat. Ex-China offers: the latest offer for 40-42% South African chromite concentrate was $280/mt; 48-50% Zimbabwe chromite concentrate was offered at $360-370/mt; 40-42% Turkish lump ore was offered at $315-320/mt, all flat WoW.

Supply side, chrome ore inventory continued to rise, hitting a record high. SMM data showed total chrome ore port inventory this week at 4.7964 million mt, up 5.07% WoW; Tianjin port inventory stood at 4.0192 million mt, up 5.9% WoW. Mounting oversupply pressure significantly weighed on ore prices. However, with high ore arrival costs, traders’ willingness to sell diverged—some cut prices to move material, while others held onto cargoes. The ore market is expected to remain weak.

Demand side, mainstream steel mills cut their July tender prices by 200 yuan. Ferrochrome producers held dim expectations for the near term, largely adopting a wait-and-see stance. Procurement pace slowed recently alongside a desire to bargain down prices. Trading sentiment was sluggish during the week, characterized by a tug-of-war between sellers and buyers.