[SMM Chrome Daily Review] Ferrochrome Market Remains Stable; Chrome Ore Trading Sluggish, Prices Edging Lower

On June 5, 2026, high-carbon ferrochrome retail quotations were unchanged, with Inner Mongolia high-carbon ferrochrome flat at 8,250-8,400 yuan/mt (50% metal content).

This week, the ferrochrome market fluctuated within a narrow range, remaining overall in the doldrums. Tsingshan and TISCO's June steel tenders settled flat, providing short-term bottom support for ferrochrome prices and largely ending the previous prolonged decline, with retail quotations unchanged WoW. Downstream, the stainless steel market fluctuated downward. Although production schedules stayed high, purchase willingness for ferrochrome was insufficient, with limited inquiries and transactions recently, mostly for delivery of long-term contracts. Market confidence in ferrochrome was low, as increased output significantly intensified oversupply, leading to widespread bearish expectations among participants. Ferrochrome is expected to continue moving sideways in the near term. Cost side, chrome ore prices weakened, lowering ferrochrome costs and easing production pressure somewhat, while overall operations remained in the doldrums.

On the raw material side, on June 5, 2026, quotations for 40-42% South African fines, 40-42% Turkish lump, and 48-50% Zimbabwean fines at Tianjin port were flat from the previous trading day. For CIF futures, the latest quotation for 40-42% South African fines was $290/mt.

This week, the chrome ore market was in the doldrums, with both futures and spot prices declining further. In the spot market, chrome ore inventories rose again, increasing selling pressure on traders. According to SMM data, as of June 5, 2026, national chrome ore port inventory stood at 4.386 million mt, up 0.14% WoW, of which Tianjin port chrome ore inventory totaled 3.6429 million mt, up 0.63% WoW. Different grades of chrome ore varied in performance. South African fines were in significant oversupply, with quotations dropping relatively more, while mainstream lump and high-grade chrome concentrate remained tight, lending some short-term price support. On the futures side, major overseas miners quoted South African fines at $290/mt this week, down $10 WoW. South Africa's preferential electricity price policy of 0.62 rand/kWh has been approved, which will lead to full-scale production resumptions of ferrochrome. However, the chrome ore oversupply pattern is unlikely to change in the near term, and prices are expected to continue fluctuating downward, pending the release of downstream demand.