【SMM Analysis】Ferrochrome Market Steady as Steel Tender Bidding Cycle Kicks In

Ferrochrome

Price Review

Ferrochrome prices saw no adjustments this week.

As of August 21, 2026: 

• Inner Mongolia high‑carbon ferrochrome is RMB 7,850‑8,000 /50‑metric‑ton base unit;
• Sichuan and Northwest China high‑carbon ferrochrome is RMB 7,950‑8,050 /50‑metric‑ton base unit;
• East China high‑carbon ferrochrome is RMB 8,300‑8,400 /50‑metric‑ton base unit;
• Kazakh high‑carbon ferrochrome is RMB 9,200‑9,300 /50‑metric‑ton base unit;
• The high‑carbon ferrochrome steel tender expectation index registered RMB 8,030.23 /50‑metric‑ton base unit, with mainstream market expectations pointing to flat or modestly lower prices.

Demand Side

The downstream stainless steel market trended weakly this week. Futures slipped, and spot prices followed suit. Although the traditional peak consumption season of “Golden September & Silver October” is approaching, market confidence remains subdued. Steel mills show low willingness for pre‑stockbuilding, and there has been no material recovery in inquiries and procurement for ferrochrome. Most market participants take a wait‑and‑see approach and will formulate plans after major steel mills release tender prices next month.

Supply Side

Domestic ferrochrome production presents widening north‑south divergence. Smelters in southern regions such as Guangxi and Guizhou have cut output amid cost‑margin inversion, dragging down regional ferrochrome output. Inner Mongolia in the north maintains stable operation with output staying at high levels, and overall ferrochrome supply remains ample. On the import front, insufficient production resumption in South Africa and high costs in Zimbabwe keep imports low, exerting little near‑term market impact. Overall, supply surplus is the core theme, and ferrochrome prices are expected to run soft in the short term.

Chrome Ore

Price Review

As of August 21, 2026, Tianjin Port quotations:

• South African 40‑42% chrome concentrate ore at RMB 53.5‑54.5 /dmtu;
• Zimbabwean 48‑50% chrome concentrate ore at RMB 58.5‑60 /dmtu;
• Turkish 40‑42% chrome lumpy ore at RMB 70‑71 /dmtu, flat week‑on‑week.

Overseas offers:

• South African 40‑42% chrome concentrate ore at USD 285 /ton, flat week‑on‑week;
• Zimbabwean 48‑50% chrome concentrate ore at USD 365‑375 /ton, up USD 5 week‑on‑week;
• Turkish 40‑42% chrome lumpy ore at USD 340‑350 /ton, up USD 10 week‑on‑week.

Supply Side

Chrome ore port inventories fluctuate around the extremely high level of 5 million tonnes, keeping supply loose. South African chrome ore fines are sufficiently available. Major overseas mines have kept offers unchanged for two consecutive rounds, underpinning price floors while capping the upside for chrome ore prices. Supply of mainstream‑origin chrome ore and high‑grade chrome ore concentrates is tight. Rising ocean freight rates push up transportation costs; forward prices from overseas mines remain firm, increasing cost pressure for traders and reinforcing their price‑holding sentiment. Supported by the above factors, spot quotations remained stable this week amid stalemated bargaining between buyers and sellers, with limited physical concluded trades.

Demand Side

Entering a new round of steel tender bidding cycle, wait‑and‑see sentiment prevails across the market. Ferrochrome smelters stay prudent and avoid long‑term stockbuilding. In addition, ferrochrome supply surplus weighs on ferrochrome prices. Smelters are under heavy production‑cost pressure and inventory‑liquidation pressure, showing limited willingness to purchase raw‑material chrome ore, and no large‑scale bulk buying has taken place. Only sporadic small‑volume deals were closed this week, preventing sharp price swings.