India: OMC Chrome Ore E-auction Receives Moderate Response

Odisha’s state-owned miner- Odisha Mining Corporation (OMC) had scheduled its Chrome ore e-auction yesterday (28th Apr’20). Out of the total quantity of 33,100 MT, only 23,900 MT were sold, leaving 9,200 MT quantity unsold.

The major highlights and the response by the market insiders on the Auction are as under:
1)    The miner had reduced the base price of Chrome ore by up to 15% against the last auction which was held on 27^th Feb’20 (no auction in March).
2)    The Chrome ore offered by South Kaliapani Chromite Mines received good response for the higher-grade material. Meanwhile, 5,000 MT of Chrome ore with Cr 46-48% and 44-46% remained unsold.
3)    Chrome Ore offered from Sukrangi Mines received up to 18% higher response above the set base price for the higher-grade Chrome ores. However, 1,800 MT Chrome ore from the mines remain unbooked.

According to industry sources, many producers with captive mines also participated in the auctions as the in-house production has been heavily affected during the countrywide lockdown. Since the lockdown, limited buying has been observed due to suspended or curtailed operations in the country. However, Ferro Chrome producers actively participated in the auction for the higher graded material as they anticipate that the prices of Ferro Chrome may rise post increase in the Ferro Chrome Prices in China.

The grade-wise auction results of Chrome ore with respective Base Price and quantities from both the mines is as