Indian Chrome Ore Production Fell more than 18% in FY15

Production of chrome ore and chrome concentrate in India has gone down by almost 19% to 2.22 MnT in FY15.

In FY14, India produced 2.73 MnT of chrome ore and chrome Concentrate. However, in FY15, Indian production of chrome ore and concentrates is recorded at 2.22 MnT, with Odisha contributing to 100% of total production. The fall was mainly due to Tata Steel’s chrome ore production falling to 0.23 MnT in FY15, down by 72% Y-o-Y.

The lease validity for Tata Steel’s chromite mine in Sukhinda Valley had lapsed and mining was stopped on 17 May’14. Operations resumed on 22 Jan’15 after receiving 3rd lease renewal from Odisha government. In FY14 Tata Steel produced 0.83 MnT – almost one-third of India’s total chrome ore production.

Indian Exports & Imports

Indian chrome ore imports also have come down by almost 8%, according to data collected from Directorate General of Foreign Trade (DGFT). In FY15 chrome ore import was recorded at 240,000 MT against 260,000 MT in FY14. South Africa and Oman were the only two countries which exported chrome ore to India, contributing 110,000 MT and 130,000 MT respectively.

The devaluation of the Chinese Yuan has increased China’s cost of importing chrome ore, and this could work in favor of the Indian producers of ferro chrome, who are further aided by the depreciating INR.

Indian Chrome Ore Production (Quantity in MnT)

Source: SteelMint Stats, Odisha Govt., Company Reports