OMC Chrome Ore Prices Dropped in July

Lower price forced the PSU to cancel concentrate allocation.

OMC chrome ore prices dropped across all grades in the July round of chrome ore e-auction held on 31st of July. The +54 grade friable chrome ore price of the South Kaliapani Mines dropped by 8% to INR 13,679 from INR 14,889 in June. Similarly, the 52-54 grade price dropped by 9.6% to INR 12,214 from INR 13,523 in the previous month. But, a steep decline in price was seen in the 48-50 grade which dropped by 27.8% to INR 10,110 from INR 14,018. Similarly,chrome ore prices of the Sukungi chrome ore mines also dropped. While the 52-54 grade fetched a lower H1 price of INR 12,114 from INR 13,923 a month ago, the 48-50 grade also dropped to INR 10,610 from INR 14,418 in June.

Among the major allotees, VISA Steel got an allocation of 9000 tonnes, followed by Navbharat,Rohit Ferrotech andPL Alloys with allocation of 4,400 tonnes, 3,800 tonnes and1000 tonnes respectively.

According to a source in the government owned mining company, lower price of chrome ore concentrate has forced OMC to cancel allocations. 900 tonnes of concentrate was to beput on offer. However,out of this only 300 tonne was offered in the auction, and the rest 600 tonne was supplied to state based parties as per the long term supply agreement.

OMC Chrome Ore Prices July,2015

 Prices in INR/MT

Source: SteelMint Research