Tata Steel has rolled over its prices for May’16. This is for the 3rd consecutive month that the miner has kept prices unchanged. In the month of Mar’16 and Apr’16 also the miner had rolled over its prices.
The annual production of chrome ore and Concentrate in FY16 of Tata Steel was 1.23 MnT. Tata Steel Chrome Ore Production Increased by 1 MnT in FY16 in comparison to FY15. Since Feb’16, 50-48 grade chrome concentrate price is set at INR 7500/MT. Poor demand has forced the miner to sell at the same price.
Due to poor response from bidders, OMC also has had to sell the material at the set base price in the April round of e-auction, held on 20th April. Even, the miner had to cancel open sale of some grades due to low price (below base price) and only the state-based units who have long-term supply arrangement with OMC were allocated the Ore ( 50-52,44-46,42-44 grade) at the prevailing base price.
Overall, out of the 53,300 MT of Chrome Ore (including Concentrate) put up for the e-auction only 22,800 MT fetched bids and remaining 30,500 MT remain unsold.
Industry News
The central government had earlier abolished 30% export duty on chrome ore and the domestic ferro alloys industry has been strongly opposing the move. They feel zero export duty would flood the country with cheaper ferro chrome imports from China and Malaysia, killing value addition. The government is currently reviewing the export duty on chrome ore. Tata Steel has argued that there is enough chrome ore in the country to cater to the domestic industry. So export of the commodity will not create scarcity and price rise. The government of India is yet to take any decision on the review of export duty on chrome ore and chrome concentrate. The ministry will soon submit its recommendations to the union cabinet and the cabinet will take the final decision. However according to sources, it is unlikely that the government will re-impose export duty on chrome ore.
Leave a Reply