China: Ferro chrome prices fall on ample supply, sluggish demand

• Chrome ore prices fall, reducing cost support
  
  
• Maintenance activities at mills pressure demand
  
  

China's ferro chrome prices dropped in the week ended 10 June 2026. High-carbon ferro chrome (Cr:50%, C:6-8%) prices in China decreased by RMB 50/t ($7/t) w-o-w to RMB 8,290-8,700/t ($1,225-1,286/t). Meanwhile, medium-carbon (Cr:60%, C:1%) prices also eased by RMB 200/t ($30/t) to RMB 12,900-13,100/t ($1,907-1,936/t), while low-carbon (Cr:60%, C:0.1%) also fell by RMB 100/t ($15/t) and stood at RMB 13,500-13,800/t ($1,995-2,040/t),exw including taxes.

China's domestic ferro chrome market witnessed a modest softening in prices, as easing raw material support and expectations of rising supply offset the stabilising influence of unchanged long-term contract settlements, leaving overall market sentiment cautiously balanced amid subdued trading activity.

Market updates

Weak chrome ore market erodes cost support

The chrome ore market remained under pressure as weak upstream fundamentals continued to weigh on ferro chrome production costs. Spot prices of South African 40-42% grade chrome concentrate at Tianjin Port edged lower, while overseas futures prices held largely stable amid limited spot activity.

Domestic port inventories exceeding 4.3 million tonnes (mnt) have intensified selling pressure on traders. Meanwhile, ferro chrome producers are maintaining cautious procurement strategies, restricting purchases to small-volume, demand-driven orders and keeping overall buying interest subdued.

Seasonal demand slowdown weighs on ferro chrome trade

Demand from the stainless steel sector showed signs of softening as the industry entered its traditional consumption off-season. Maintenance activities at major producers, including Baosteel Desheng and Taiyuan Iron and Steel Stainless Steel, led to a m-o-m decline in June crude steel production plans.

While Qingshan and Taiyuan Steel kept their June ferro chrome tender prices unchanged, several mills, including Zhongtian Steel and Hebei Yongyang, lowered procurement prices. With end-user demand weakening and stainless steel producers adopting cautious, need-based purchasing strategies, ferro chrome market transactions remained subdued.

Outlook

China's ferro chrome market is likely to remain under downward pressure through June, as increasing supply, weakening raw material cost support, elevated chrome ore inventories, and sluggish stainless steel demand continue to weigh on prices and trading sentiment.

With inputs from CBC