- Ample supply amid soft demand weighs on prices
- Smelter losses support prices despite weak demand
China’s leading stainless steel producers, Tsingshan and TISCO and, have reduced their October 2026 high-carbon ferro chrome (50% Cr basis) tender prices by RMB 200/t ($30/t) m-o-m. Tsingshan’s tender price stands at RMB 7,795/t ($1,164/t), while TISCO has set its October procurement price at RMB 7,645/t (1,141) DAP, including taxes. For material delivered to Tianjin port, Tsingshan’s price is RMB 7,645/t ($1,141/t), RMB 150/t ($22/t).
The latest tender price cuts come amid weak and subdued ferro chrome market sentiment, with ample supply continuing to outweigh demand despite maintenance-related production cuts in Inner Mongolia. Softer chrome ore sentiment, weak overseas momentum, cautious stainless steel buying and lower mill bids have continued to weigh on prices and market confidence. Rising 300-series stainless steel inventories have also kept buyers cautious.
However, widening smelter losses have forced production cuts, maintenance stoppages and lower operating rates, gradually tightening supply after months of elevated output. Falling ferro chrome prices alongside rising chrome ore costs have squeezed margins and weakened production enthusiasm, providing some downside support. Meanwhile, pre-holiday restocking and improving stainless steel procurement are lending support to demand, with market participants seeing early signs of a recovery in buying activity.
With supply tightening and smelting costs supporting prices, ferro chrome prices are likely to remain rangebound, while further production cuts and improved stainless steel buying could provide additional support.
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