Bhubaneswar: Concerned with the lukewarm response of the October round of chrome e-auction, Odisha government controlled miner OMC is seriously considering to cut its floor price in the next e-auctions. OMC generally decides floor price of its chrome ore on the basis of the previous month’s selling prices and the market response.
However, due to weak Ferrochrome market chrome buyers are not showing much interest in buying large amount of Chrome ore. In the October round of chrome ore e-auction OMC witnessed lukewarm response, as only 6,900 MT out of the offered little more than 22,000 MT has been sold. Out of the sold 6,900 MT, VISA steel has brought 5,000 MT.
Even OMC had cancelled auction of all other grades of chrome ore except the +54, 48-50 and 46-48 grades due to ‘price crash’. The +54 grade friable chrome ore fetched (H1 price) INR 14,377 whereas the 48-50 grade fetched INR 9,945 and the 46-48 grade fetched INR 9,530.
According to sources, OMC may reduce floor price of various grades of chrome ore ( friable and concentrate) significantly ( even below INR 8,000) to attract buyers and to avoid price crash further.
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