【SMM Analysis】Ferrochrome Imports Edge Up in April; Oversupply Weighs on Prices

News release on May 20, 2026:

According to China Customs statistics, China's total imports of high-carbon ferrochrome reached 145,100 tons in April 2026, up 6.2% month-on-month and down 42.78% year-on-year.

Breakdown by source country:
• Imports from South Africa stood at 15,900 tons, falling 52.59% month-on-month and 88.24% year-on-year;
• Imports from Kazakhstan hit 16,900 tons, rising 1.79% month-on-month and 21.89% year-on-year;
• Imports from India amounted to 14,300 tons, increasing 3.77% month-on-month and 16.21% year-on-year;
• Imports from Zimbabwe were 37,400 tons, surging 174.91% month-on-month and rising 4.47% year-on-year.

From January to April 2026, China's cumulative imports of high-carbon ferrochrome totaled 546,800 tons, a year-on-year drop of 49.81%.
• Imports from South Africa: 90,100 tons, down 83.68% year-on-year;
• Imports from Kazakhstan: 310,900 tons, down 8.8% year-on-year;
• Imports from India: 58,000 tons, up 24.11% year-on-year;
• Imports from Zimbabwe: 84,100 tons, down 24.81% year-on-year.

Since February 2026, Glencore, a major South African chrome enterprise, has accepted the temporary electricity tariff of 0.87 rand per kWh offered by national power utility Eskom, successfully resuming production at its Lion ferrochrome smelter. South Africa's ferrochrome sector has entered a production recovery phase with growing output.

In addition, South Africa is actively advancing the implementation of the preferential electricity tariff policy of 0.62 rand per kWh. Major chrome producers have signed formal agreements with Eskom, pending approval from energy regulator Nersa. It is expected that South Africa's ferrochrome exports will rise further, driving steady growth in China's ferrochrome imports.

New domestic ferrochrome production capacity in China has basically reached full operational capacity recently. With southern China entering normal and wet seasons, many manufacturers have restarted production leveraging low electricity costs, leading to a notably loose overall ferrochrome supply.

Although downstream stainless steel production remains at a high level, its growth momentum is sluggish, and steel mills show weak purchasing sentiment. The oversupply of ferrochrome keeps worsening, resulting in continuous gradual declines in spot retail prices. The market is expected to stay weak in the short term.