Odisha based ferro chrome producers are positive over the new base pricing formula.
As the Odisha government-miner, OMC is conducting e-auction for the sale of 29,300 MT chrome ore with a lower base price, Odisha based ferro chrome producers have expressed their happiness over the new mechanism adopted by the miner for fixing the base price. OMC has cut base price for various grades of chrome ore by upto 27% in chrome ore e-auction round to be held in December.
The ferro chrome industry has been demanding for adopting a pricing mechanism for fixing the base price of chrome ore on the basis of either FoB export price of chrome ore or prevailing domestic ferro chrome price. Earlier, OMC was fixing the base price of chrome ore on the basis of previous month’s H1 price.
“ We are satisfied that OMC has finally reduced the base price. The new base price reflects a more realistic price based on the prevailing market condition and this would benefit user industry positively”, said a senior official of a ferro chrome firm.
Due to high base price of OMC’s chrome ore and falling domestic ferro chrome price, OMC’s last few chrome ore auctions fetched lukewarm response from buyers. In the last e-auction held in October, the company managed to sell only 6,900 MT chrome ore, out of the offered 22,000 MT material owing to higher base price.
Odisha based ferro chrome producers have been demanding reduction of floor price of OMC’s chrome ore and concentrate in view of fall in domestic ferro chrome prices. Last month, ferro chrome producers under the banner of Kalinga Nagar Industries Association (KNIA) had written to the Managing Director of OMC, Mr Girish S.N to reduce floor price in the upcoming chrome ore e-auction.
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