OMC Chrome Ore prices Increased Throughout all the Grades

OMC Chrome ore prices increased throughout all the grades in the June round of e-auction held on 17th of June, due to higher demand from the participants. While the price for +54 grade of the South Kaliapani mines increased by 7% to INR 14,889 /MT, which was INR 13,913 in the May round of e-auction. Similarly, the 52-54 grade chrome ore price increased by 8.6% to INR 13,523/MT from INR 12,449/MT in the previous month.

Similarly, the other grade prices have also increased except the 42-44 grade which has dropped by 17.9 % to INR 8,903/MT from INR 10,850/MT in the previous month. It may be noted that,

OMC sells 70% of its Chrome ore produced through a long-term supply agreement to Odisha based steel industries. But the price for the same is being decided through a national level e-auction where the rest 30% is put on for sale. Due to the rainy season production is going to decrease in the coming few months. Hence, the prices are expected to rise further in the next few months. Meanwhile, limited production by Tata at its Sukinda mines owing to its captive status and the closure of other merchant Chrome mines like BC Mohanty, Mishrilal has impacted the availability of Chrome ore in the market. According to an estimate by ICC there is a annual shortage of 1.75 million tonnes of chrome ore in the market. Recently, Ferro chrome makers in the state like VISA, JSL and Rohit Ferrotech have approached the state government to take steps to open the closed merchant chrome mines under the new MMDR act.

Chrome Ore E-auction dated 17 June’15