Indian chrome ore auctions conducted by Odisha Mining Corporation (OMC) received an expected healthy response as the entire quantity was booked at approximately 16% higher than the floor price. This auction was one of the most awaited events for the ferro chrome producers without captive mines as they were almost out of chrome ore.
The base price was increased by a whopping 45% from May’ 20 in line with the absence of auctions leading to higher ferro chrome prices and higher operational cost due to monsoons and labour availability concerns.
The higher-grade ores received bids at approximately 35% more than the base price. The total quantity offered was comparatively much lower than the normal levels. The prices of chrome ore have now touched a 2-year high.
Producers of ferro chrome are tensed over the future trends, as they believe that if the prices for ferro chrome doesn’t shoot up they won’t be able to survive with such high-priced ores. Meanwhile, ferro chrome being an export centric product, the low demand from China is compounding to their troubles.
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