India: Chrome Ore Production Falls Amid Low Demand

Odisha contributes almost entirely towards chrome ore production in India. Chrome Ore Production in Feb’19 was noted to be 384,308MT. It is about 36% lower as compared to the previous month viz., Jan’19.

Production level by Captive miners were substantially down by 22% in Feb’19 as compared to previous month. Balasore Alloys contributed the highest amount in the production of Chrome Ore, amongst the Captive mines in India. However, the production was marginally low by 3% on M-o-M basis. Meanwhile Ferro Alloys Corporation Limited(FACOR) and Infrastructure Development Company Limited (IDCOL) decreased their production by significant levels. Production by FACOR were down by 33% and IDCOL by 53% when compared to Jan’19.

Production levels by Merchant miners were substantially low by 37% in Feb’19 as compared to the previous month. TATA Steel and OMC in together contributed to 77% of the total Chrome Ore Production by India in Feb’19. production for TATA Steel stood at 193,299MT which was less than Jan’19 by 12%. TATA Steel however remained the largest miner in Feb’19. Odisha Mining Corporation (OMC) remained the second largest merchant Miner with 101,083MT production in Feb’19. Meanwhile production cuts in IMFA and B.C. Mohanty were observed by 3% and 40% respectively.

Such decline in Production levels were due to low demand. As the current Chrome Ore inventories sit at high levels and there are low demand in the market and therefore, to avoid the oversupply situation, the productions were maintained at lower levels.

A total of 36% decline was noticed in Feb’19 M-o-M. Meanwhile, the production were also low in Feb’19 as compared to previous year by 30%.

All Quantity in MT
Source: Govt. of Odisha