China: Ferro chrome prices hold firm despite eroding cost support

• Rising inventories and weak demand pressure prices
  
  
• Steady prices mask underlying market weaknesses
  
  

China's ferro chrome prices remained flat in the week ended 17 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 ($1,227-1,288/t).

Meanwhile, medium-carbon (Cr:60%, C:1%) prices also stayed unaltered at RMB 12,900-13,100/t ($1,909-1,939/t).

While, low-carbon (Cr:60%, C:0.1%) also remained static at RMB 13,500-13,800/t ($1,998-2,042/t),exw including taxes.

China's Domestic ferro chrome prices remained largely stable today, with no major changes across key producing regions. However, weakening raw material support, rising port inventories, softer steel mill bids, and limited spot transactions kept overall market sentiment under pressure.

Market updates

Record port inventories weigh on chrome ore market

Upstream chrome ore prices continue to decline as port inventories surpass 4.4 mnt, reaching a record high. A large share of imports consists of South African ore, further intensifying bearish sentiment. Weak stainless steel demand and shrinking smelter margins have led to cautious, low-inventory procurement, while mounting shipment pressure has forced some traders to offer discounted cargoes to improve cash flow.

Stainless steel slowdown limits ferro chrome demand

Demand across the stainless steel supply chain remains weak, with buyers showing limited purchasing interest. Ongoing maintenance at several stainless steel mills has reduced June crude steel output, particularly in the 201 series segment. As the industry enters the seasonal demand lull, shrinking end-user consumption and cautious market sentiment have restricted transactions mainly to essential purchases, prompting steel mills to maintain conservative operating strategies.

Outlook

The ferrochrome market is expected to remain weak in the near term, pressured by falling chrome ore costs, high supply levels, and subdued stainless steel demand. While price declines may slow, a meaningful recovery is unlikely without stronger downstream consumption.

With inputs from CBC