In the Union Budget 2016-17 it has been announced that Export Duty on chrome ore and concentrates will be abolished.
Looking at the demand-supply situation of chrome ore in India, the Union Government has re-examined its export policy and has decided to remove duty on chrome ore, which stood at 30%.
Chrome ore is used to make stainless steel, after it is upgraded to ferro chrome. Earlier, the government had taken steps to preserve chrome ore for domestic use, raising the export duty on chrome ore to 30% in 2012. This had significant impact on the volume of chrome ore exports. However, India cannot consume all the chrome ore mined in the country for ferro chrome making, as a huge amount of electricity is needed for the conversion, which is very expensive. Taking cognizance of the same the Government has decided to ease export of the material.
Nearly all of India’s chrome ore is produced in Odisha, with Odisha Mining Corporation having control over a third of the output. A few companies such as Tata Steel, Indian Metal and Ferro Alloys, FACOR and Balasore Alloys have captive mines in the state.
Because of weak demand, the export price of the mineral has also been falling. China is biggest buyer of Chrome ore in the world, and also the largest stainless steel and steel producer in the world.
The last Indian chrome ore export tender was awarded at USD 210/MT FOB India, in November’15.
Leave a Reply