Chrome & Manganese Update: Ferrochrome Cuts Hit Ore Prices

Chinese ferrochrome is under pressure going into the National Day holiday, and that pressure is now reaching the chrome ore price. Meanwhile, South African manganese producers are finding more ways to get ore to market, and China's zero-tariff scheme is pulling more chrome through the Eastern Cape. Chinese markets are closed from 1 to 7 October and data services have paused updates (FerroAlloyNet), so expect few fresh Chinese price points until about 8 October. Here is what buyers, sellers and investors need to know.

Ferrochrome Tender Cuts Put Pressure on South African Chrome Ore

China's main stainless steel mills cut their October high-carbon ferrochrome purchase prices. Tsingshan's tender is RMB 7,795 per 50% basis tonne and TISCO's is RMB 7,595, which pulled the whole ferrochrome benchmark lower (SMM). SMM also said overseas chrome ore prices "fell rapidly" during the week, and that expected extended stainless production cuts in October weakened demand further (SMM).

Supply is slipping too. China's September high-carbon ferrochrome output fell 3.17% month on month, though it was still up 18.8% year on year, and January–September output was up 30.73%. The southern provinces (Guizhou, Guangxi and Hunan) cut output by 23.33% because higher power tariffs pushed production costs above selling prices (SMM). The Inner Mongolia weekly average was RMB 7,837.5 per 50% basis tonne (about US$1,167), down RMB 12.5 on the week (SMM).

Demand is not helping. SMM said the September–October peak season "completely" failed to arrive, and stainless inventory in Wuxi and Foshan started building again (SMM). Because Chinese smelters buy most of South Africa's UG2 and metallurgical-grade concentrate, lower tenders and smelter losses translate into weaker bids for South African ore. SMM noted that lower ore prices "lowered expected ferrochrome production costs", which means ore sellers are absorbing part of the squeeze.

Manganese: Flat Chinese Port Prices, New Export Routes for SA Miners

Jupiter Mines' annual report shows Tshipi é Ntle Manganese, in the Kalahari manganese field, sold 3.5 Mt in FY26, above its historical average of 3.4 Mt a year. It sent 828,000 t through Namibia's Port of Lüderitz, and rail volumes reached 2.6 Mt (Mining Weekly; Polity). Rail availability beat plan, with fewer derailments and cable-theft incidents. Tshipi is owned 49.9% by Jupiter Mines and 50.1% by Exxaro.

The lesson for Northern Cape producers is that several export routes, plus improving Transnet rail, keep ore moving when individual ports are congested. Transnet Freight Rail carried 168 Mt in FY2025/26, targets 200 Mt by 2029 and lists manganese among its core export corridors (African Mining Week).

Prices are mixed. South African semi-carbonate ore held at US$4.41–4.45/t-unit at Tianjin on 30 September (SMM), but Mysteel said Chinese manganese ore prices kept weakening through 23–29 September as spot sales slowed (Mysteel). In India, MOIL raised prices for all manganese ore grades by 5% for October (ScanX; CNBC-TV18). SMM warned of "downward pressure" on silicomanganese as output rises (SMM).

China's Zero-Tariff Scheme Lifts Chrome Exports Through Ngqura

Port of Ngqura business strategy manager Xola Mkontwana said commodity throughput bound for China has grown "exponentially" since China's zero-tariff policy for African goods took effect, naming chrome, magnetite, iron ore and corn (People's Daily Online/Xinhua; The Star; Nampa). The scheme runs from 1 May 2026 to 30 April 2028, covers South Africa and 19 other African countries that are not least-developed countries. No volumes were given. "It's the market that is there and the price that is good for the miners and owners," Mkontwana said. Exporters must meet rules of origin to qualify, so correct paperwork is now a commercial issue.

Pricing Snapshot

Commodity	Grade / basis	Price	Date
Ferrochrome	Tsingshan October HC FeCr tender	RMB 7,795 per 50% basis t (cut)	30 Sep
Ferrochrome	TISCO October HC FeCr tender	RMB 7,595 per 50% basis t (cut)	30 Sep
Ferrochrome	Inner Mongolia HC FeCr, weekly average	RMB 7,837.5 (about US$1,167), −12.5 w/w	Week to 30 Sep
Chrome ore	Overseas seaborne offers	"Fell rapidly" (no figure published)	30 Sep
Manganese ore	SA semi-carbonate lump, Tianjin	US$4.41–4.45/t-unit, flat	30 Sep
Manganese ore	SA semi-carbonate lump, Qinzhou	US$4.74–4.80/t-unit, flat	30 Sep
Manganese ore	Gabon 46% / Australia 46% lump, Tianjin	US$5.13–5.18 / US$5.26–5.33 per t-unit, flat	30 Sep
Manganese ore	MOIL (India), all grades	+5% for October	1 Oct
Silicomanganese	Inner Mongolia / Ningxia 6517	US$776.31–782.89/t (avg 779.6), +0.21	30 Sep
Silicomanganese	China futures, main contract	About RMB 5,800/t	30 Sep
Ferromanganese	China HC FeMn 65C7.0	US$684.21–710.52/t (avg 697.36), +0.19	30 Sep

Sources: SMM, SMM price table, SMM, ScanX. SMM's USD port prices are converted from VAT-inclusive Chinese prices for warehouse stock, not CIF. There was no fresh free chrome ore port quote in the last 48 hours.

Freight, Ports and Policy: What Exporters Should Watch in October

Freight and fuel. The Baltic Dry Index hit a one-month low of 3,113 on 30 September before rising 27 points to 3,140 on 1 October (Baird Maritime; Hellenic Shipping News). Capesize earnings eased to US$41,191/day, but the Supramax index, which matters most for chrome and manganese parcels from Durban and Maputo, held at 1,797, its highest since August 2022. Singapore VLSFO fell US$47 to US$793/t (ENGINE).

Ports. At Durban, ships are waiting more than nine days, with 33 vessels at anchor and truck booking waits of 4 to 22 hours (Nova News). At Richards Bay, TNPA barred coal trucks from the east gate via Medway Road and is shifting cargo to rail (Sunday Times), and the area may be declared an Air Quality Act priority area (Zululand Observer). Both matter for trucked chrome using the same roads.

Policy. The EU's "melt-and-pour" steel origin rule took effect on 1 October and could reshape Chinese and Indonesian stainless exports, and with them ferrochrome demand (Mysteel; inews24). Solidarity warned South Africa could lose AGOA status "before Christmas" (Polity). Comment on Eskom's proposed 2027/28 tariffs, including an average 8.83% rise for direct customers, closes on 2 October (CapeTown ETC).

What This Means for African Exporters

Chrome sellers: Lower tenders and falling seaborne offers mean weaker bids. With China closed until 7 October, expect thin trading and possible further discounts when the market reopens.
Manganese sellers: Chinese port prices are flat to weaker, but India's MOIL increase and Tshipi's multi-port approach show there is room to protect volumes and margins.
Buyers: Soft ferrochrome and easing Capesize rates give room to negotiate, but firm Supramax rates will keep smaller-parcel freight costs high.
Investors: Transnet's rail recovery is now visible in producer results, while the zero-tariff scheme, EU melt-and-pour rule and AGOA risk are reshaping trade routes.

Work with ChromeBridge Africa

Whether you are selling chrome or manganese ore, sourcing for a smelter or assessing the market, ChromeBridge Africa connects verified buyers and suppliers across southern Africa. Contact our team to discuss your next shipment, or get started on the platform.