Am I correct in believing that the precious blood should not be in a chalice that is used for a grape juice ceremony?

You are correct. “The chalice and paten in which wine and bread are offered, consecrated, and received, since they are intended solely and permanently for the celebration of the Eucharist, become ‘sacred vessels’” (Book of Blessings, 1360).

Eucharist here means the valid Eucharist, consecrated by one who has the power to consecrate the bread and wine. This certainly rules out its use with grape juice.