[SMM Chromium Daily Review] Cost Support Weakened, Chromium Market Performed Sluggishly

On May 12, 2026, retail quotations for high-carbon ferrochrome remained unchanged, with Inner Mongolia high-carbon ferrochrome at 8,350-8,450 yuan/mt (50% metal content).

The ferrochrome market was in the doldrums during the day, with quotations holding steady but trading activity sluggish, retail shipments slow, and bearish expectations prevailing in the market. Downstream stainless steel mill futures prices fluctuated downward, spot quotations held stable but end-use demand follow-through was insufficient, making it difficult to increase actual transaction volumes. As a result, steel mills mostly adopted a cautious wait-and-see attitude toward ferrochrome purchases, with no large-scale bulk purchasing actions emerging. Meanwhile, chrome ore prices weakened further, driving down ferrochrome smelting costs, weakening bottom support for ferrochrome prices, and leading to slight quotation adjustments. Given that ferrochrome production schedule increases are more pronounced than downstream demand, oversupply issues in ferrochrome are expected to gradually emerge, limiting upside room for ferrochrome prices.

Raw material side, on May 12, 2026, spot chrome ore prices saw limited fluctuations, with futures quotations flat but transactions weakening. At Tianjin port, 40-42% South African fines, 40-42% Turkish lump ore, and 48-50% Zimbabwean fines quotations were down 0.25 yuan/mtu from the previous trading day. On the CIF futures front, the latest transaction price for 40-42% South African fines was adjusted down to $310/mt.

The chrome ore market performed weakly during the day, with buyers and sellers mostly on the sidelines and transactions stagnant. On the spot front, South African fines ore quotations were adjusted downward in line with forward spot transaction prices. Constrained by chrome ore port inventory at high levels, traders lacked confidence and held rather pessimistic expectations, with many making concessions to facilitate shipments. However, ferrochrome producers had relatively sufficient raw material inventory and showed weak willingness to purchase, mostly making inquiries for immediate needs only, resulting in a tug-of-war between sellers and buyers. On the futures front, although major ex-China mines maintained weekly quotations at $318/mt, long-term contract transaction prices were adjusted down $8 WoW to $310/mt. Currently, traders still hold bearish expectations for future chrome ore prices, with purchase operations being very cautious, mostly limited to immediate-need transactions, and overall wait-and-see sentiment remaining strong in the market.