- Supply glut erodes cost support
- Weak demand limits price upside
China’s ferro chrome prices remained largely stable in the week ended 15 July 2026. High-carbon ferro chrome (Cr:50%, C:6-8%) prices in China slipped marginally by RMB 50/t ($7/t) w-o-w to RMB 8,040-8,450/t ($1,188-1,248/t). Meanwhile, medium-carbon (Cr:60%, C:1%) prices held steady at RMB 12,700-12,900/t ($1,876-1,905/t), while low-carbon (Cr:60%, C:0.1%) fell by RMB 100/t (15/t) to RMB 13,100-13,400/t ($1,935-1,979/t),exw including taxes.
The domestic ferro chrome prices remained stable, but bearish sentiment persisted as record-high chrome ore inventories at Tianjin Port weakened raw material cost support. Lower stainless steel mill tender prices, limited spot demand, and aggressive trader discounting kept market activity subdued.
Market updates
Ore surplus keeps cost pressure intact: China’s ferro chrome market remained under pressure despite stable domestic prices, as raw material cost support continued to weaken. Chrome ore prices held steady, but record-high port inventories of more than 4.4 Mt, largely comprising South African imports, limited any scope for a price recovery. At the same time, lower international chrome ore offers from major South African suppliers added further pressure. On the supply side, ferro chrome production remained elevated, supported by lower rainy-season power tariffs in southern China, which encouraged producers to resume operations, while northern plants continued normal production.
Steel mill caution dampens market activity: Demand from the stainless steel sector remained subdued, with mills maintaining a cautious procurement strategy and restricting purchases to immediate requirements. Several major producers reduced output through maintenance shutdowns, particularly on 201-series stainless steel lines, contributing to lower crude stainless steel production. Seasonal weakness in downstream consumption, coupled with limited spot transactions and increased trader discounting, kept ferro chrome trading activity muted and weighed on overall market sentiment.
Outlook
China’s ferro chrome market is likely to remain weak, as abundant chrome ore availability and record-high port inventories continue to erode cost support, while elevated ferro chrome production and subdued stainless steel demand is likely to keep prices under pressure.
With inputs from CBC
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