OMC chrome ore auctions concluded today and bids were received close to the base price despite the sharp rise seen in ferrochrome prices amid hefty Chinese demand. Key findings from the auction are as below:
- The bids did not exceed the base price by much as the buyers are aware that TSML has enough quantity to cater to the needs of the domestic ferrochrome producers and therefore aggressive bidding was avoided.
- Supply of chrome ore has increased as 40,000t of chrome ore is being offered by TSML in Jan ’21. Thus, buyers have refrained from bidding high.
- Increased bidding would have resulted in higher prices of ores from OMC and thereby increased prices from TSML as well. This will now be controlled.
- The base price was increased by 16% in the auctions but due to reduced interest by the buyers, prices of chrome ore had an almost similar difference with the H1 prices from the previous month.
- A total of 12,100t chrome ore of regular-grade remained unsold particularly for grades 42-44%, 44-46% and 46-48%. Meanwhile, only 62,100t of sub-grade ore were booked at the base price by the smelters.
- Despite a m-o-m increase of INR 9,000/t in the ferrochrome prices, the auction received weak response amidst surplus chrome ore availability.
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