China: Ferro chrome prices edge lower w-o-w on sluggish buying interest

• Supply overhang caps price recovery
  
  
• High ore inventories weigh on prices
  
  

China's ferro chrome prices declined slightly across all major grades in the week ended 1 July 2026. High-carbon ferro chrome (Cr:50%, C:6-8%) prices in China slipped by RMB 200/t ($30/t) w-o-w to RMB 8,090-8,500/t ($1,191-1,252/t). Meanwhile, medium-carbon (Cr:60%, C:1%) prices also softened by RMB 200/t ($30/t) to RMB 12,700-12,900/t ($1,870-1,900/t), while low-carbon (Cr:60%, C:0.1%) fell by RMB 300/t (45/t) to RMB 13,200-13,500/t ($1,943-1,987/t),exw including taxes.

The domestic ferro chrome market remained under pressure, with prices edging lower as weak downstream demand and elevated chromium ore inventories continued to weigh on fundamentals. Lower steel mill tender prices and limited spot trading prompted traders to offer discounts, keeping market sentiment bearish.

Market updates

Cost support weakens amid ore oversupply: Raw material cost support continued to erode as high chrome ore inventories at Chinese ports and expectations of further declines in South African ore prices kept the market under pressure. Meanwhile, lower rainy-season power tariffs supported production resumptions in southern China, while northern smelters maintained stable operating rates, keeping ferrochrome supply elevated. The combination of softer production costs and abundant supply continued to cap price support.

Sluggish demand curbs procurement: Weak downstream demand persisted as maintenance shutdowns and production cuts at major stainless-steel mills, along with seasonal off-season conditions, continued to suppress ferrochrome consumption. Buyers remained cautious amid expectations of further price declines, limiting procurement to immediate production needs and keeping spot market activity muted.

Outlook

Chinese ferro chrome prices are expected to remain range-bound with a downside bias in the near term, as elevated supply, subdued stainless steel demand, and weakening cost support continue to pressure the market. Procurement is likely to remain cautious, while any meaningful price recovery will depend on stronger downstream demand and a tightening of supply fundamentals.

With inputs from CBC