[SMM Chromium Daily Review] Quotes Continued to Rise, Strong Willingness to Hold Prices Firm

On March 5, 2026, offers for high-carbon ferrochrome in Inner Mongolia; Sichuan and north-west China rose by 50 yuan/mt (50% metal content) from the previous trading day; east China high-carbon ferrochrome was flat from the previous trading day. For imported ferrochrome, offers for India high-carbon ferrochrome; Kazakhstan high-carbon ferrochrome; and South Africa high-carbon ferrochrome rose by 100 yuan/mt (50% metal content) from the previous trading day.

The ferrochrome market mainly ran firm and steady intraday, with producers holding firm on offers and mostly maintaining bullish expectations. Cost side, chrome ore prices continued to rise, further increasing pressure on ferrochrome smelting; policy adjustments in south China pushed up electricity prices, directly lifting production costs, and some producers suspended production or cut production, providing strong support at the bottom. Demand side, downstream stainless steel planned production rebounded significantly; driven by expectations for the peak consumption season of “Golden March and Silver April,” steel mills gradually released purchasing demand for ferrochrome to replenish raw material inventory; recently, some steel mills entered the market to purchase, and tender prices rose. Meanwhile, given that some ferrochrome producers were mainly delivering earlier orders, spot cargo supply was relatively tight; overall supply and demand remained in a tight balance, and the ferrochrome market is expected to remain mainly stable in the short term. In the overseas market, it is still necessary to follow up on progress of South Africa’s special electricity price policy of 0.62 rand/kWh for the ferrochrome industry, and to watch for potential impacts on the domestic market if a recovery in South Africa’s ferrochrome industry boosts China’s ferrochrome imports.

Raw material side, on March 5, 2026, offers for spot cargo at Tianjin Port—40-42% South Africa fines; 40-42% South Africa raw ore; 46-48% Zimbabwe chrome concentrate fines; 48-50% Zimbabwe chrome concentrate fines; 40-42% Turkey lumpy chrome ore; and 46-48% Turkey chrome concentrate ore—were raised by 0.5-1 yuan/mtu from the previous trading day. On the futures side, the latest offer for 40-42% South Africa fines was $307/mt; overseas market quotes for Zimbabwe chrome ore held steady at highs.

The chrome ore market was strong intraday, with spot and futures prices rising in tandem. On the spot side, driven by raised overseas market quotes, purchase costs increased; bullish expectations among domestic traders became more pronounced, and offers continued to edge higher. Meanwhile, shipments of chrome ore showed a downward trend; supply is expected to tighten going forward, and spot cargo—especially mainstream lumpy material—was tight, leaving ore prices with upside room in the short term. Downstream acceptance of high-priced material was average, but as existing inventory continued to be consumed, some producers began to gradually accept current price levels and restock in batches to maintain production continuity. On the futures side, the latest quote for South Africa 40-42% chrome concentrate ore was $307/mt, up $7 MoM, in line with the market’s bullish expectations; Zimbabwe chrome concentrate ore held steady at highs due to local export control policies; and for mainstream chrome ores such as Turkey, ocean freight rates rose significantly due to Middle East geopolitical conflicts, lifting port-arrival costs and pushing prices higher. In the short term, the chrome ore market is expected to hold up well overall.