[SMM Chrome Daily Review] Loose Supply Pattern Unlikely to Change in the Short Term, Chrome Market Mainly in the Doldrums

On June 4, 2026, retail quotations for high-carbon ferrochrome remained unchanged, with Inner Mongolia high-carbon ferrochrome steady at 8,250-8,400 yuan/mt (50% metal content).

The ferrochrome market operated steadily during the day. Downstream steel mills gradually entered the market for purchases, but mostly for rigid restocking needs and fulfilling long-term contract orders, with spot retail inquiries and transactions remaining limited. Steel mills had no apparent production cut plans and maintained rigid procurement demand for ferrochrome. However, the supply-side increase was more pronounced, and the market lacked confidence due to oversupply concerns. Ferrochrome is expected to continue moving sideways in the short term. Cost side, chrome ore prices weakened, ferrochrome costs shifted downward, production pressure eased somewhat, and the overall market maintained operations in the doldrums.

Raw material side, on June 4, 2026, quotations at Tianjin port for 40-42% South African fines, 40-42% Turkish lumpy ore, and 48-50% Zimbabwean fines remained flat from the previous trading day. On the CIF futures front, the latest quotation for 40-42% South African fines was $290/mt.

The chrome ore market was relatively stable during the day. Spot market, port inventory had long remained at historical highs, traders faced persistent pressure to sell, and coupled with a sluggish procurement pace on the demand side, chrome ore prices overall exhibited a gradual decline, though trends diverged across different categories. South African fines had a notable surplus, with relatively larger price cuts, while mainstream lumpy ore and high-grade chrome concentrate had tight supply, with short-term price support remaining. Futures front, the latest quotation from major ex-China mines for South African fines was $290/mt, down $10 MoM. Although South African ferrochrome had entered a full production resumption phase, the chrome ore oversupply situation was difficult to resolve in the short term. Chrome ore prices are expected to continue to fluctuate downward, awaiting further demand release to drive market sentiment recovery.