China: Ferro chrome prices stable, cautious buying limits market momentum

• Production recovery and ample supply cap price upside
• Record-high port inventories in China weigh on chrome ore prices 

China’s ferro chrome prices remained stable in the week ended 24 June 2026. High-carbon ferro chrome (Cr:50%, C:6-8%) prices in China remained flat w-o-w currently ranging between RMB 8,290-8,700/t ($1,221-1,282/t). Meanwhile, medium-carbon (Cr:60%, C:1%) prices also stayed unaltered at RMB 12,900-13,100/t ($1,900-1,930/t), while, low-carbon (Cr:60%, C:0.1%) remained static at RMB 13,500-13,800/t ($1,988-2,032/t),exw including taxes.

China’s domestic ferro chrome market remained range-bound, with prices holding steady despite mounting pressure from oversupplied port inventories, weak raw material support and lower steel mill tender prices. Muted spot activity amid inventory sell-offs continued to weigh on market sentiment.

Market updates

Oversupply keeps chrome ore weak: The chrome ore prices remained under pressure as record-high port inventories surpassing 4.4 mnt continued to cap any upward price movement, although South African 40–42% chrome concentrate prices at Tianjin Port held steady. Narrowing ferro chrome margins kept procurement activity conservative, with buyers restricting purchases to immediate requirements. Amid sluggish buying interest, traders intensified inventory liquidation through discounted offers to improve cash flow, reinforcing bearish market sentiment.

Seasonal slowdown weighs on ferro chrome demand: Downstream stainless steel demand remained subdued, with purchasing activity constrained by seasonal demand weakness. Maintenance shutdowns at several major stainless steel mills are expected to reduce June crude stainless steel output by over 160,000 t m-o-m, weighing on ferro chrome consumption. Market participants largely maintained a wait-and-watch stance, with transactions limited to immediate requirements while steel mills continued to procure cautiously.

Outlook

The ferro chrome market is likely to maintain a weak bias in the near term, amid ample supply, subdued stainless steel demand and softening chrome ore costs. Elevated inventories and rising production levels are expected to limit price upside, while downside likely to ease gradually.

With inputs from CBC