India's OMC Increases September Chrome Ore Base Prices

India's OMC

India's state-owned Odisha Mining Corporation (OMC) has raised the base prices of chrome ore at its September auction. The increase comes in response to rising ferro-chrome prices. OMC set the base price for 48-49.99% grade ore from its South Kaliapani mines at 19,743 rupees per tonne ($236.5/t), up from 18,386 rupees per tonne in August. This reflects the upward trend in ferro-chrome prices and the growing demand from producers seeking higher returns through exports. Domestic buyers, however, remain cautious due to high production costs and a sluggish stainless steel market.

Interestingly, OMC is not offering its 50-51.99% grade ore from its Sukrangi mines in September. However, the base price for this grade in August was approximately 20,173 rupees per tonne. The state's trading firm MSTC will manage the sale of 22,400 tonnes of 42-54% grade friable chrome ore from the South Kaliapani and Sukrangi mines on 20 September. This is a drop from the 24,800 tonnes offered at the August auction, likely due to the lower output caused by the monsoon season.

Additionally, MSTC will also offer around 1,300 tonnes of lumps, chips, and fines (30-36% grade) from the Bangur mines on behalf of OMC. Despite these price increases, India's domestic ferro-chrome prices for 60% grade remained stable at 106,000-108,000 rupees per tonne ex-works as of 19 September.