- Maintenance at stainless steel producers caps ferro chrome demand
- Chrome ore prices remain firm despite record-high port stocks
China’s ferro chrome prices remained flat across all grades during the assessment week ended 22 July 2026. High-carbon ferro chrome (Cr:50%, C:6-8%) prices in China remained unchanged w-o-w at RMB 8,040-8,450/t ($1,188-1,249/t). Meanwhile, medium-carbon (Cr:60%, C:1%) prices also held steady at RMB 12,700-12,900/t ($1,87-1,906/t) and low-carbon (Cr:60%, C:0.1%) at RMB 13,100-13,400/t ($1,936-1,980/t) exw, including taxes.
Domestic ferro chrome prices in China remained steady w-o-w amid subdued demand. However, record-high chrome ore inventories at Tianjin Port continued to undermine raw material cost support despite steady South African 40-42% chrome concentrate prices. Meanwhile, lower procurement prices from stainless steel mills, subdued spot trading, and aggressive trader discounting kept overall market sentiment weak.
Market updates
High port stocks cap upside in chrome ore: Upstream chrome ore spot prices remained broadly stable, although elevated port inventories continued to cap any meaningful price recovery. The oversupply, largely driven by South African imports, sustained bearish market sentiment. Meanwhile, narrowing ferro chrome smelter margins kept raw material procurement strictly need based.
Mounting inventory pressure prompted traders to offer deeper discounts to accelerate sales and improve cash flow, reinforcing the prevailing downside pressure on the chrome ore market. Additionally, lower monsoon-season power tariffs are supporting higher ferro chrome production, keeping supply ample and limiting any meaningful price recovery.
Procurement remains cautious: Downstream demand from the stainless steel sector remained weak, prompting mills to adopt a cautious procurement strategy. Ongoing maintenance at several producers curtailed production, while the seasonal slowdown in end-user demand further dampened consumption. Consequently, ferro chrome buying was largely limited to hand-to-mouth requirements, with market participants maintaining a wait-and-watch stance amid subdued demand fundamentals.
Outlook
China’s ferro chrome market is expected to remain subdued as declining South African chrome ore prices, elevated port inventories, and weak stainless steel demand continue to weigh on sentiment, limiting the scope for any price recovery in the coming week.
With inputs from CBC
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