China: Stainless steel mills reduce Jul'26 ferro chrome tender price by RMB 200/t ($30/t)
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- Tender cut reflects weak demand fundamentals
- Drop in UG2 chrome ore prices reduces cost support
China's Tsingshan, a leading stainless steel mill, has lowered its July 2026 high-carbon ferro chrome tender price (Cr:50% basis) by RMB 200/t ($30/t) m-o-m to RMB 8,295/t ($1,224/t) DAP, including taxes. Additionally, TISCO also reduced its tender price by the same amount to RMB 8,095/t ($1,195/t) DAP, including taxes.
The decline in tender price reflects the continued pressure on China's ferro chrome market from ample supply and weak stainless steel demand. The reduction follows a period of sluggish spot market activity, where buyers remained cautious amid poor downstream consumption and sufficient material availability.
A key factor behind the tender cut was the weakening cost support from raw materials. South African UG2 chrome ore prices fell by around $23/t m-o-m in June, easing production costs for Chinese ferro chrome producers. The decline in ore prices reduced the urgency for mills to maintain higher ferro chrome procurement prices.
Supply-side fundamentals also remained bearish. China's high-carbon ferro chrome production reached a record high in May to around 0.9 mnt, supported by lower electricity tariffs during the rainy season and strong operating rates among smelters. Elevated output kept market availability comfortable, limiting suppliers' bargaining power.
On the demand side, stainless steel consumption remained subdued amid seasonal weakness. Although stainless mills continue to operate, procurement has largely been need-based, with buyers showing limited interest in building inventories. Spot ferro chrome transactions therefore remained muted, contributing to downward pressure on prices.
Going forward, any meaningful recovery in ferro chrome prices will depend on an improvement in stainless steel demand and a reduction in ferro chrome production levels. Until then, market sentiment is expected to remain cautious.
