Traditionally,Tata Steel have been selling Chrome Concentrate, with Chrome content more than 50% and having higher Cr/Fe Ratio (more than 2.4). But, now they are planning to sell Chrome Ore in the Indian market of typically 32-34% chrome content. This would be of use mostly to those who have idle COB plants and can utilise this Ore to produce Chrome Concentrate. The resultant chrome concentrate could have a market both in India and abroad. The current price of Chrome ore concentrate is in the range of USD 230-235 /MT CIF China. In India, the price of 48-50% Cr grade Chrome ore increased from INR 6,994 to INR 7,668 /MT in the recently concluded OMC e-auction.
It is understood that the sales will be through online auction. The said company is thinking to initially allocate around 10,000 – 12,000 MT of Chrome Ore to test the market. In the recently concluded OMC e-auction, a substantial quantity of ore was left unsold. Participation and response to this Tata Steel auction can be interesting considering the grades on offer are not usually sold.
Tata Steel Chrome Ore Production Increased by 1 MnT in FY16
Production of chrome ore increased by 56% in Fy16 in comparison to FY15.
In FY15, total chrome ore production in India was 2.2 MnT. Chrome ore production in India increased by 56% and stood at 3.47 MnT in FY16 majorly contributed by Tata Steel, which had produced only 0.23 MnT in FY15. In FY16, Tata Steel has produced 1.23 MnT of Chrome ore and Concentrate.
As per the new MMDR Act 2015 all merchant mining leases will expire in 2020 and all the merchant blocks will be put on auction after that. Tata Steel’s Sukinda Chrome mine has been accorded merchant status, and this has led to Tata Steel maximizing their Chrome ore resource and ramping up production.
Odisha Chrome Ore Production from Jan’16 to Jun’16
| Month | TATA Steel | O.M.C. | Balasore Alloys | IMFA | FACOR | IDCOL | B.C. Mohanty | Jindal Stainless | Total |
| January’16 | 174,600 | 88,122 | 46,732 | 18,888 | 16,400 | 16,143 | 24,768 | 12,547 | 398,199 |
| February’16 | 81,926 | 153,706 | 57,599 | 12,774 | 17,122 | 8,286 | 26,048 | 17,460 | 374,922 |
| March’16 | 89,584 | 233,189 | 56,770 | 19,208 | 28,740 | 9,664 | 27,024 | 8,128 | 472,307 |
| Apr’16 | 131,385 | 33,769 | 35,914 | 54,849 | 17,108 | 18,986 | 16,102 | 11,838 | 319,951 |
| May’16 | 153,190 | 18,439 | 32,566 | 55,865 | 17,460 | 10,001 | 11,409 | 298,930 | |
| Jun’16 | 169,990 | 66,280 | 24,605 | 46,788 | 35,548 | 4,686 | 9,707 | 9,232 | 366,836 |
| Total | 800,675 | 593,505 | 254,186 | 208,372 | 103,638 | 49,479 | 113,650 | 70,614 | 2,194,119 |
Qty in MT
Source: Odisha Govt., SteelMint
Provisional Data
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