- UG2 chrome ore prices fall $9/t m-o-m in Jul’26
- Ferro chrome output surges by 33% y-o-y in H1
China’s leading stainless steel producers, Tsingshan and TISCO, reduced their August 2026 high-carbon ferro chrome (50% Cr basis) tender prices by RMB 200/t ($30/t) m-o-m. Tsingshan’s procurement price has been set at RMB 8,095/tonne (t) ($1,196/t) DAP, including taxes, while TISCO reduced its price to RMB 7,895/t ($1,166/t) DAP, including taxes, reflecting ample supply, falling raw material costs, and weaker seasonal demand.
The tender cuts followed a broad decline in market fundamentals. Upstream chrome ore spot prices weakened during July, reducing cost support for ferro chrome producers. South African UG2 chrome ore prices fell by around $9/t m-o-m to $277/t, while prices of high-carbon ferro chrome (60% Cr basis) declined by approximately RMB 225/t ($33/t) m-o-m to RMB 8,213/t ($1213/t) exw in July so far.
Additionally, chrome ore inventories at major Chinese ports climbed to a record 4.74 million tonnes (mnt) by end-June, with South African ore accounting for 82% of stocks, as per SteelDaily. Abundant raw material availability eased supply concerns and kept ferro chrome prices under pressure despite lower imports.
As per Mysteel, China’s high carbon ferro chrome production reached 5.34-5.35 million tonnes (mnt) in H1CY’26, up 33% y-o-y, with June output hitting a record 951,700 t as southern smelters resumed operations during the rainy season and new capacity came online.
Although China’s stainless steel crude production increased 6% y-o-y to 21.2 mnt in H1CY’26, stronger chrome ore arrivals kept port inventories elevated. Meanwhile, the traditional June-July off-season prompted major stainless steel mills to undertake maintenance and reduce output, weakening ferro chrome procurement.
The simultaneous tender price reductions by Tsingshan and TISCO have reinforced bearish market sentiment. With ferro chrome supply remaining abundant and stainless steel demand seasonally subdued, buyers have adopted a cautious procurement strategy while producers face mounting pressure to lower offers. Unless supply moderates or downstream demand improves after the seasonal slowdown, ferro chrome prices are expected to remain under pressure.
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