China: Ferro chrome prices show mixed trends w-o-w amid softening stainless demand

• Stainless steel output cuts weigh on ferro chrome demand
  
  
• Decline in chrome ore prices erodes cost support
  
  

China's ferro chrome market showed mixed trends in the week ended 3 June 2026. High-carbon ferro chrome (Cr:50%, C:6-8%) prices in China remained unchanged w-o-w to RMB 8,340-8,750/t ($1,233-1,293/t). However, medium-carbon (Cr:60%, C:1%) prices edged down by RMB 100/t ($15/t) to RMB 13,100-13,300/t ($1,936-1,966/t), while low-carbon (Cr:60%, C:0.1%) fell by RMB 200/t ($30/t) and stood at RMB 13,600-13,900/t ($2,010-2,054/t),exw including taxes.

Steady June contract prices between Qingshan Group and Taiyuan Iron and Steel (Taigang) supported high-carbon values, although high chrome ore inventories and expectations of increased supply capped market activity and weighed on sentiment.

Market updates

Weak chrome ore market erodes cost support

China's chrome ore market remained under pressure, weakening cost support for ferro chrome prices. Spot prices of South African 40-42% chrome concentrate at Tianjin Port edged lower, while overseas futures offers were largely stable but saw limited spot trading. Meanwhile, port inventories remained high at over 4.3 million tonnes (mnt), increasing selling pressure on traders. Downstream ferro chrome producers continued to procure cautiously, purchasing only as needed amid subdued demand.

Stainless steel output cuts weigh on ferro chrome demand

Ferro chrome demand is expected to soften in June as Chinas crude stainless steel production is projected to decline m-o-m, partly due to maintenance shutdowns at mills including Baosteel Desheng and Taiyuan Iron and Steel (Taigang). While Qingshan Group and Taigang maintained flat June ferro chrome purchase prices, some mills reduced tender prices. With the market entering the seasonal demand lull, stainless steel producers largely purchased on a need-only basis, resulting in subdued ferro chrome trading activity.

Outlook

China's ferro chrome market is likely to remain under pressure in the short term. Increased production as southern smelters resume operations, coupled with ample chrome ore inventories, is expected to boost supply. Meanwhile, weaker stainless steel output and seasonal demand slowdown may curb ferro chrome consumption, leading to continued weak price consolidation.

With inputs from CBC