While the central government has restored the export duty on chrome ore after heavy resistance from the domestic ferro chrome industry, Tata Steel a leading merchant miner of chrome ore has said that there is no scarcity of the ore in the domestic market.
After the abolition of export duty on chrome ore in the Union Budget last February, domestic ferro chrome manufacturers were demanding restoration of export duty. They had been arguing that export of chrome ore will create raw material scarcity in the domestic market.
Dismissing their concerns, Tata Steel has said that there is surplus availability of chrome Ore in the market. In an e-mail response to a query the company said “With re-opening of all mines and enhanced production volumes of OMC, there is surplus capacity available in the domestic market. This surplus material can be exported after fulfilling 100% demand of the domestic market”.
On the other hand, the company has also made it clear that it has always favored export of chrome Ore concentrate not the chrome ore. Chrome ore concentrate is produced by processing of low grade chrome ore which cannot be directly used for ferro chrome production.
Tata Steel has also mentioned that 50% of total ferro chrome produced in India is being exported, and there is demand of around 0.5 MT of ferro chrome in the domestic market.
It may be noted that state run trading agency MMTC on behalf of Tata Steel has floated a global e-tender for export of 40,000 MT of chrome concentrate and the deadline for submission of the bid is 3 Jun’16.
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