Indian Ferro Chrome prices are likely to rise owing to short supply of Chrome ore.
Market participants reported that Ferro Chrome market is witnessing more inquiries from domestic buyers, who are facing shortage of inventory, as Stainless Steel producers are willing to purchase at INR 69,000/MT. It is expected that prices will reach to INR 70,000/MT in a week’s time.
SteelMint assessed that viewing Tata Steel’s plant closure, the non-integrated producers will try to raise prices in the domestic market – taking advantage of supply crunch in the market. However, no change is expected in export prices, as the global Ferro Chrome industry is oversupplied, and demand from China is very low.
Tata shuts down 2 Ferro Chrome Plants in Odisha
Tata Steel shuts down its 60,000 MT pa Ferro Chrome plant at Bamnipal in Keonjhar district owing to unavailability of raw material. The company’s Chrome ore mines at Sukinda in Jajpur district have been closed since 17 May, 2014 owing to non-renewal of mining lease.
Apart from this, the Odisha High Court has also restrained the company of operation following several petitions by Odisha based Ferro Chrome producers including IMFA, FACOR, Balasore Alloys and Navbharat Ventures in the Odisha High Court. Last month, the company has requested the court to allow procurement of limited amount of Chrome ore to feed its plant.
However, the court has rejected the request and company has to shutdown its plant. Next hearing of the case is scheduled on 18 Aug, 2014.
Moreover, not only the Bamnipal plant, the company has also closed down its 2nd Ferro Chrome plant (TS Alloys, a fully owned subsidiary of the company) located at Cuttack district. Tata group had acquired 50,000 MT pa from Kolkata based Rawmet Ferrous Industries in 2007.
In a written reply, Tata Steel said, “Operation of Sukinda Chromite Mine is suspended since 17 May, 2014 owing to express order for renewal of lease. Tata Steel has requested the state government for renewal of its lease. Ferro Alloys plant at Bamnipal tried its best to run the plant with available inventory and using innovating practices till 4 Aug, 2014.
Suspension of operation at Sukinda & Bamnipal has impacted livelihood of more than 6,000 persons with revenue loss of INR 300 crore per year to the government“.
(Reported by Rohan Baid, Tapan Moharana)
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