Indian chrome ore auctions by OMC were concluded yesterday in the late evening, in which almost the entire offered quantity got booked. Below are some key highlights from the auction:
- Total 33,100t of regular chrome ore grades and 80,000t of sub-grade ores were put under auction. Out of which, 2,100t of 44-46% and 900t of 42-44% remained unsold, while the entire quantity of subgrade ores (Cr2O3 less than 40%) was sold.
- Higher grades of chrome ore (48% and higher) fetched an overwhelming response as their entire lot was booked at an average 28% higher than the base price.
- The base price was lower in the November auctions by 10% as compared to previous month, due to continuous downtrend in the ferro chrome prices and near to absent exports to China, which is the biggest market for ferro chrome producers.
- Although the auction received a healthy response for higher-grade ores, the prices were comparatively lower than previous months prices. Producers shared with SteelMint that past month’s prices were too high to bear in a dull market.
- For some grades, the chrome ore auction prices fell by upto 19% m-o-m, while the remaining grades decreased by an average of 14% as compared to Oct-20.
- Surprisingly, the entire lot of subgrade ores were booked and fetched 14% higher value over the floor price. As most producers were inclined to buy sub-grade ores for blending with the higher-grade ores.
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