[SMM Chromium Daily Review] Steel Bidding Period Approaching, Chromium Market Mostly in Wait-and-See Mode

On May 18, 2026, retail quotations for high-carbon ferrochrome were slightly adjusted, with Inner Mongolia high-carbon ferrochrome at 8,300-8,400 yuan/mt (50% metal content) and Sichuan high-carbon ferrochrome at 8,400-8,450 yuan/mt (50% metal content).

Trading sentiment in the ferrochrome market was sluggish during the day, with participants relatively pessimistic, and retail quotations dropped 25 yuan/mt (50% metal content) MoM. On the supply side, driven by the electricity price advantage during the transitional period between dry and rainy season and the rainy season in south China, ferrochrome production is expected to increase further, with the oversupply issue gradually emerging, and price support for ferrochrome continues to weaken. Meanwhile, the downstream stainless steel market has performed poorly recently, with both futures and spot prices continuing to retreat. Although production schedules remain high, steel mills' purchase willingness is relatively limited, and actual demand release is insufficient. As the new round of steel mill tender pricing cycle approaches, most ferrochrome producers expect next month's steel mill tender price to remain on par, while some participants pessimistically anticipate a slight decline. Cost side, chrome ore prices have been drifting lower, overseas market quotations have weakened, and trader confidence is insufficient, driving ferrochrome production costs lower and weakening bottom support. The ferrochrome market is expected to remain in the doldrums in the short term.

In terms of raw materials, on May 18, 2026, chrome ore spot prices saw limited fluctuations while futures quotations were lowered. At Tianjin port, quotations for 40-42% South African fines, 40-42% Turkish lump ore, and 48-50% Zimbabwean fines were down 0.5 yuan/mtu from the previous trading day. On the CIF futures front, the latest quotation for 40-42% South African fines was $305/mt.

The chrome ore market continued its previous weak operation during the day, with spot quotations broadly lowered and futures quotations expected to decline. On the spot front, overseas market quotations showed a downward trend, domestic traders lacked confidence, coupled with persistently high chrome ore inventory but limited purchases by ferrochrome producers, traders' willingness to hold prices firm was weak, and some low-priced cargoes had begun offering discounts for shipments. On the futures front, the weekly quotation for South African fines from the most-traded overseas mine was lowered by $13 MoM to $305/mt, with quotations for other chrome ore series also adjusted accordingly. Currently, traders still hold bearish expectations for chrome ore prices going forward and are very cautious in purchase operations, mainly transacting based on rigid demand, with strong overall wait-and-see sentiment in the market. Looking ahead, chrome ore supply will remain loose, with short-term room to fluctuate downward, as participants mainly wait for next month's steel mill tender pricing.