Posted on 28 May 2026
China's two major stainless steel producers kept their high-carbon ferrochrome (HC FeCr) procurement prices for June unchanged from May, a move that offered some support to a market recently pressured by falling spot prices.
Tsingshan Group, the country's largest stainless producer, kept its June purchase price for HC FeCr under long-term contract unchanged at Yuan 8,495/t (50% Cr basis), or $1,252/t, including tax and delivery, cash payment, the company had announced recently.
TISCO, another major stainless steelmaker based in North China, also held its long-term contract price for HC FeCr flat at Yuan 8,295/t (50% Cr basis) on the same basis, for delivery next month, Mysteel Global learned.
The flat bids came after China's domestic spot FeCr prices had slid recently, and many market participants had been expecting that the key stainless mills would respond by cutting their FeCr bid prices.
On May 27, Mysteel assessed the price of 55% high-carbon FeCr in Inner Mongolia, the key reference price in the domestic FeCr market, lower at Yuan 8,350/t, 50Cr, ex-works including VAT, a drop of Yuan 150/t on month.
Looking ahead, analysts expect a modest price decline next month, citing ample supply and weakening cost support.
On the supply side, domestic FeCr output remains high while imports stay at low levels, Mysteel Global noted.
China imported 145,090 tonnes of high-carbon FeCr in April, according to the latest data from the General Administration of Customs (GACC), and while last month's total was higher by 6.2% from March, they were lower by a huge 42.8% on year. Market sources suggest that when import data for May is available, it will likely show that imports recovered on-month this month but that overall levels remain low.
More importantly, the rainy season in south China's main FeCr production areas is filling hydroelectric dams, prompting the hydro-power companies to reduce their electricity tariffs – to the benefit of smelters, a Shanghai-based analyst noted.
"FeCr output in the south is set to rise during the rainy season," she said, adding that this will add pressure to spot prices.
Cost support is also loosening. Chrome ore prices have been falling amid persistently high import volumes.
China imported around 2.33 million tonnes of chrome ore in April, jumping 54.4% on year, the Customs data show, albeit down 4.6% on month. Cumulative imports from January to April reached 8.78 million tonnes, marking a significant 37.9% on-year increase.
Over the past month, both portside and seaborne chrome concentrate prices have lost ground. On May 27, Mysteel assessed the portside price for 40-42% South African chrome concentrates at Yuan 57.5/dmtu, lower by Yuan 1/dmtu from a month earlier.
Seaborne prices have followed a similar trend. Mysteel assessed the CIF price for 40-42% chrome concentrates shipped from South Africa to Tianjin at $303/dmt on the same day, lower by $12/dmt on month.
On the demand side, any increase in stainless steel output – the largest consumer of FeCr – is expected to be limited in June.
"Production schedules at stainless mills are unlikely to increase much," the analyst noted.
Given rising output, falling ore costs, and muted demand growth, downside risks for domestic HC FeCr prices are likely to mount in June.
Source:Mysteel Global
