On June 1, 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).
At the beginning of the week, the ferrochrome market operated steadily. The downstream stainless steel market maintained a wait-and-see stance. Planned production stayed high, but as the traditional consumption off-season set in, end-use demand weakened, with limited new purchasing demand for ferrochrome. Most participants primarily drew down their own raw material inventory, and market inquiries and transactions were sluggish, dominated by long-term contract orders. Markets outside China: South Africa's national power utility Eskom officially confirmed that Nersa approved the preferential electricity price policy of 0.62 rand/kWh for the ferrochrome industry, with Samancor receiving a 5-year term and Glencore-Merafe a 3-year term. South Africa's ferrochrome industry is expected to enter a full production resumption phase. According to South African customs data, South Africa's total high-carbon ferrochrome exports in April 2026 were 117,200 mt, up 50.78% MoM and down 13.41% YoY. Of this, exports to China were 38,700 mt of high-carbon ferrochrome, up 72.47% MoM and up 116.96% YoY. Going forward, South Africa's ferrochrome exports are likely to continue growing, China's high-carbon ferrochrome imports will gradually rebound, and the loose domestic ferrochrome supply pattern will further intensify, exerting sustained downward pressure on ferrochrome prices.
Raw material side, on June 1, 2026, Tianjin port quotations for 40-42% South African fines, 40-42% Turkish lump ore, and 48-50% Zimbabwean fines were down 0.5 yuan/mtu from the previous trading day. On the CIF futures front, the latest quotation for 40-42% South African fines was $300/mt.
At the beginning of the week, the chrome ore market fluctuated downward. Spot level, chrome ore port inventory continued to accumulate. According to SMM data, national chrome ore port inventory exceeded 4.3 million mt, hitting a record high. Traders faced increasing pressure to sell, with growing willingness to sell at lower prices. Demand side, ferrochrome production stayed high, and subsequent purchase demand awaits release. Chrome ore overall maintained an oversupply-driven weak pattern. Futures level, the weekly quotation from major ex-China South African fines mines held steady at $300/mt, with the flat steel mill tender providing bottom support. Spot and futures prices gradually converged. Combined with high ferrochrome production, downstream smelters recently increased direct purchases, while traders mostly adopted a wait-and-see attitude, with limited transactions. According to South African customs data, South Africa's total chrome ore exports in April 2026 were 2.4399 million mt, up 4.96% MoM and up 32.48% YoY. Of this, chrome ore exports to China were 1.7541 million mt, up 9.37% MoM and up 84.64% YoY. South Africa's ferrochrome production resumptions accelerated, boosting local chrome ore absorption capacity. However, in the short term, South Africa's chrome ore exports remain high, and the domestic chrome ore oversupply pattern is unlikely to improve significantly. Chrome ore prices are expected to continue fluctuating downward in the near term, awaiting further demand release to drive market sentiment recovery.
![[SMM Hot-Rolled Arrivals] Arrivals at Mainstream Markets Declined Simultaneously This Week](https://imgqn.smm.cn/usercenter/niwZw20251217171715.jpg)
