[SMM Chrome Daily Review] Prices Move Sideways, Tug-of-War Between Sellers and Buyers Continues

On May 26, 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. Mainstream steel mills' June tender prices settled flat, in line with earlier market expectations, with overall sentiment leaning toward cautious wait-and-see. Downstream stainless steel purchase activity continued its mediocre trend recently, but with no production cut or maintenance news for now, and planned production staying high, rigid demand support for ferrochrome remained given continuous raw material inventory consumption. In addition, chrome ore prices stopped falling and stabilized, the pace of ferrochrome cost decline slowed, and ferrochrome prices are expected to move sideways in the short term. Markets outside China: South Africa's Nersa held a public hearing on the NPA temporary power agreement signed between Eskom and chrome producers, and plans to complete the review by month-end of May. If ferrochrome production electricity prices reach 62 cents rand/kWh, subsequent production resumptions of South African ferrochrome may accelerate. On one hand, this poses import inflow impacts on China; on the other hand, improved domestic sales capacity of chrome ore may provide certain support to ore prices.

Raw material side, on May 26, 2026, Tianjin port quotations for 40-42% South African fines, 40-42% Turkish lumpy ore, and 48-50% Zimbabwean fines remained flat compared to the previous trading day. On the CIF futures level, the latest quotation for 40-42% South African fines was $300/mt.

The chrome ore market operated steadily during the day, with no adjustments to futures or spot quotations. Spot level, the overall trading atmosphere was sluggish, with downstream ferrochrome plants mainly making just-in-time procurement. Transaction volume was limited, mostly chrome concentrate ore. Port inventory stayed high at 4 million mt. Considering that recently arrived chrome ore at ports was mostly previously contracted high-priced futures cargo, traders quoted cautiously with cost support at the bottom, leaving limited room for price concessions. The tug-of-war between sellers and buyers remained stagnant, with the market waiting for further demand release. Futures level, major South African fines mines outside China quoted $300/mt on a weekly basis, while quotations for other types of chrome ore remained relatively stable. The spread between futures and spot prices narrowed, coupled with ferrochrome production staying high. Recently, downstream ferrochrome plants increased direct purchases, while traders mostly adopted a wait-and-see attitude with limited transactions, and the market continued to be under pressure overall.