China: Ferro chrome prices show mixed trends even as demand stays muted

• Weak chrome ore prices pressure market sentiment
• Ample stocks at mills, narrow margins limit trade

China’s ferro chrome prices reflected mixed sentiments across all grades during the assessment week ended 29 July 2026. High-carbon ferro chrome (Cr:50%, C:6-8%) prices in China edged down by RMB 50/t ($7/t) w-o-w at RMB 7,990-8,400/t ($1,180-1,241/t). However, medium-carbon (Cr:60%, C:1%) prices edged up by RMB 100/t ($15/t) to RMB 12,800-13,000/t ($1,891-1,920/t) and low-carbon (Cr:60%, C:0.1%) went up by RMB 100/t ($15/t) to RMB 13,200-13,500/t ($1,950-1,994/t) exw, including taxes.

The Chinese ferro chrome market remained largely stable, although transaction sentiment softened as buying interest weakened. Easing chrome ore costs, limited post-tender momentum, and subdued stainless steel demand during the seasonal lull continued to weigh on market confidence, resulting in sparse spot deals and mounting pricing pressure.

Market updates

Raw material weakness erodes ferro chrome cost support: The chrome ore market remained under pressure, with slower inventory liquidation at major ports and weak overseas futures limiting price support. Spot prices for South African and Turkish ore continued to face downward pressure from ferro chrome producers. Although suppliers resisted steep price cuts, subdued buying activity and lower procurement volumes kept market sentiment weak, reducing raw material cost support for ferro chrome prices.

Seasonal steel slowdown restrains ferro chrome demand: Demand from stainless and special steel producers remained subdued as seasonal weakness and ongoing production cuts limited ferro chrome consumption. Most steel mills continued to rely on existing inventories, resulting in fewer spot inquiries and cautious procurement. Shrinking steel margins further pressured upstream prices, while traders largely stayed on the sidelines, awaiting clearer demand signals before rebuilding inventories.

Outlook

China’s ferro chrome market is expected to remain largely stable in the near term, as weak demand offsets production cost support. Market direction will largely depend on August steel mill tenders and any changes in ferro chrome operating rates across key producing regions.

With inputs from CBC