[Weekly SMM Chromium Market Review] Chromium Market Performs Steadily in First Week After Holiday, Trading Activity Moderate

On February 27, 2026, high-carbon ferrochrome prices in Inner Mongolia; Sichuan, and north-west China remained flat MoM from the previous trading day; east China high-carbon ferrochrome rose 100 yuan/mt (50% metal content) MoM from the previous trading day; for imported iron, Indian high-carbon ferrochrome; Kazakhstan high-carbon ferrochrome; South African high-carbon ferrochrome prices remained flat MoM from the previous trading day.

This week, the ferrochrome market maintained firm quotes with a generally stable operation. During the week, Tsingshan and TISCO announced their March 2026 steel mill tender prices for high-carbon ferrochrome at 8,245 yuan & 8,045 yuan/mt (50% metal content), slightly lower than the previous bullish expectations. However, considering the short post-holiday resumption period, the ferrochrome market was not fully back from the holiday, leading to moderate trading activity. Additionally, on the cost side, chrome ore quotes remained stable at high levels, providing strong bottom support for ferrochrome producers to hold prices firm, resulting in limited price adjustments within the week. With the upcoming "Golden March, Silver April" consumption peak season, downstream stainless steel sectors mostly held optimistic expectations, planning to increase production schedules, which would release demand for ferrochrome purchases. It is expected that the ferrochrome market will mainly operate stably in the short term. In the overseas market, South Africa provided special electricity policies for the ferrochrome industry, reducing electricity prices to 87 cents/kWh. Major chromium company Glencore's Lion smelter resumed 50% of its production and planned to fully restore operations by the end of March, expecting an increase in China's ferrochrome imports in May-June.

In terms of raw materials, on February 27, 2026, spot Tianjin Port 40-42% South African fines; 40-42% South African raw ore; 46-48% Zimbabwean chromite concentrate; 48-50% Zimbabwean chromite concentrate; 40-42% Turkish chromite lumpy ore, 46-48% Turkish chromite concentrate prices remained flat MoM from the previous trading day; in the futures market, the latest offer for 40-42% South African fines was $300/mt; Zimbabwean chromite ore overseas market quotes were at high levels.

This week, the chrome ore market operated strongly and steadily, with no new futures prices and a slight rise in spot prices. As many ferrochrome producers had stockpiled before the holiday, they were mainly consuming existing inventories, leading to weak purchasing demand. Although there were inquiries, actual transactions were sluggish. However, chrome ore traders continued to maintain strong quotes. On one hand, port inventories decreased, and the arrival of high-priced chrome ore increased purchase costs, coupled with tight supplies of lump ore, further pushing traders to hold prices firm. On the other hand, new domestic ferrochrome capacities were gradually released, and most producers maintained normal operations, supporting rigid demand for chrome ore. It is expected that the chrome ore market will continue to operate steadily with a positive outlook in the short term. In the futures market, the latest round of offers for 40-42% South African chromite concentrate was $300/mt, up $3 from pre-holiday levels, with the market mostly in a wait-and-see mode. On the macro front, Zimbabwe urgently suspended all raw ore and lithium concentrates exports, but the current impact on domestic chrome ore supply was limited, with follow-up developments to be monitored. South Africa released its 2026 budget report, where the Mining Council stated that it was necessary to introduce mining incentive policies to support the development of industries such as chrome ore and ferrochrome.