India: OMC Chrome Ore Prices increase in May

Bhubaneswar: Chrome ore prices of Odisha Mining Corporation have increased across all grades in the e-auction held on 13 May, 2014. Although, the prices for inside state buyers have increased significantly, the prices for outside state buyers have declined.

The prices for +54 grade have increased by 22% to INR 14,524/MT from INR 11,879/MT in the previous month. However, offers for the same grade have remained almost flat at INR 14,524/MT for the outsiders. Prices for 52-54 grade have risen by 17% to INR 13,442/MT from INR 11,443/MT in the previous month. Meanwhile, price for the same grade for the outsiders has declined to INR 13,486/MT from INR 13,543/MT in the previous month. Similarly, offers for 48-50 grade has raised to INR 11,363/MT from INR 9,179/MT in April.

Chrome ore concentrate prices have not shown any significant change in the month of May against previous month. 38-40 grade concentrate have been fixed at INR 8,170/MT, which was INR 8,141/MT in April.

There were 55,000 MT of friable and 7,500 MT of Concentrate Chrome ore put on offer. Out of 55,000 MT friable Chrome ore, 38,500 MT was reserved for inside state buyers and 16,500 MT was reserved for outside state buyers.

Prices to remain Stable

While, OMC Chrome ore prices had dropped in April, the price in May has been increased across all the grades. Analysts have predicted that the prices will remain flat in the coming months owing to several factors including closure of Tata’s Sukinda Chrome mines and the upcoming rainy season. Tata Steel has stopped its production in Sukinda Chrome mine since 17 May, 2014 i.e. one day after the Supreme Court ordered temporary closure of 26 Iron ore and Manganese mines operation, which were running under deemed license.

OMC Chrome Ore E-auction (13 May, 2014)

 All prices in INR/MT

All prices in INR/MT