Ferrochrome Prices Slide Through October as Weak Stainless Demand and Overseas Restarts Pressure China Market

• Inner Mongolia high-carbon ferrochrome at 7,400 to 7,500 yuan per tonne by October 28, 2026
• Mainstream Chinese mills cut September purchase tender prices by 100 yuan per tonne
• East China high-carbon ferrochrome down 25 yuan to 8,000 to 8,050 yuan per tonne week on week
• Port chrome ore inventory ran about 5 million tonnes, rising to 5.18 million tonnes on October 23
• South African 40-42 percent chrome ore CIF futures at US$255 per tonne, Zimbabwean 48-50 percent at US$350 to 360 per tonne

The Chinese ferrochrome market slid through October 2026 and into early November as weak stainless steel demand, mill production cuts, and rising import pressure combined to erode cost support and buyer confidence. Inner Mongolia high-carbon ferrochrome moved from a 7,450 to 7,700 yuan per tonne band in mid-October to 7,400 to 7,500 yuan per tonne by late October on a 50 percent chrome content basis, while Sichuan quotes settled at 7,450 to 7,600 yuan per tonne. East China high-carbon slipped to 8,000 to 8,050 yuan per tonne on October 16, down 25 yuan week on week, and Kazakhstan-origin material to 9,050 to 9,150 yuan per tonne, down 50 yuan. Low-carbon ferrochrome at 60 percent chrome held at 12,600 to 12,800 yuan per tonne. Mainstream Chinese mills cut September purchase tender prices by 100 yuan per tonne month on month, and the November tender round is widely expected to settle lower again.

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The driver chain is clear. The anticipated fourth-quarter peak season in stainless steel did not arrive. Chinese 300-series mills trimmed operating rates, which pulled nickel and chrome alloy demand lower together, while US inflation data pushed rate expectations higher and dented the global stainless export story. On the supply side, overseas ferrochrome capacity that had been idled through the summer is restarting, which is lifting the pipeline of imported alloy into China at a time when domestic smelters are already running with thin margins. Southern Chinese producers have been loss-making for several weeks and have cut output, but inventories at ports are high enough to keep the market oversupplied. Port chrome ore stocks sat at about 5 million tonnes through late October and 5.18 million tonnes by October 23, with Tianjin 40-42 percent South African fines slipping 0.25 yuan per metric tonne unit and the futures reference for CIF South African 40-42 percent concentrate at US$255 per tonne. Overseas 40-42 percent South African ore was at US$265 per tonne, with Zimbabwean 48-50 percent at US$350 to 360 per tonne.

For procurement teams, the setup favours a buyer-led tactical window into the November tender round. Stainless steel mills in India, Southeast Asia, the Middle East, and the Gulf should take advantage of the weak domestic Chinese pricing and the overseas restart pipeline to push for lower contract settlements across Kazakhstan, South African, Zimbabwean, and Chinese-origin cargoes. Low-carbon ferrochrome buyers for specialty and automotive stainless grades should maintain supplier diversification between Chinese and Kazakhstan material to protect against any sudden policy shift on export rebates or chrome ore inventory drawdowns. 2027 term discussions should move away from fixed premiums towards formulas indexed to chrome ore and electricity costs so that both the port stock swing and the mill production decisions are reflected in landed cost.