The surge in coal prices at recent auctions by Mahanadi Coalfields Ltd (MCL) is wiping out margins of ferro chrome producers, as G12 grade coal (3701-4000 kcal/kg) has been booked at INR 9,095/t, excluding taxes. This will increase the cost of electricity to INR 8.13/unit for captive plants with capacities below 100 MW. Sources say ferro chrome prices might touch INR 150,000/t once China’s demand resumes after easing of lockdown restrictions.
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