India: OMC reduces base prices by 2% m-o-m for Aug’26 chrome ore auction

• Weaker ferro chrome market prompts price reduction
• Offered volume remains stable m-o-m

Odisha Mining Corporation (OMC) is set to conduct its next chrome ore auction on 19 August 2026, offering around 104,700 t, largely unchanged m-o-m from the 104,800 t offered in the previous auction. However, OMC has reduced base prices across grades by around 2%, equivalent to INR 255-664/t ($3-7/t), amid weaker domestic ferro chrome prices and cautious buying interest.

Ferro chrome prices decline on cautious buying

Indian ferro chrome prices have declined by around INR 2,800/t ($29/t) m-o-m in August, pressured by subdued buying interest and cautious procurement by consumers. Market participants have largely restricted purchases to immediate requirements, while comfortable availability has reduced the urgency to build inventories.

The decline has also been influenced by weaker stainless steel demand and limited spot market activity. Buyers have remained selective and have continued to seek lower prices, particularly as the ferro chrome market has lacked strong demand-side support.

Bid-offer gaps limit ferro chrome market activity

A persistent gap between buyer bids and producer offers has further constrained ferro chrome transactions. Producers have been reluctant to reduce offers aggressively due to production costs and raw material commitments, while buyers have pushed for lower prices in line with recent market corrections.

As a result, spot trading has remained limited, with participants adopting a wait-and-watch approach before committing to larger volumes.

Lower ferro chrome prices pressure chrome ore

The decline in ferro chrome prices has put pressure on producer margins and reduced their ability to absorb elevated chrome ore costs. Against this backdrop, OMC’s decision to lower base prices by around 2% across grades provides some relief to ferro chrome producers.

The upcoming auction will therefore be closely influenced by ferro chrome realisations, production economics, and near-term stainless steel demand.