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| Odisha |
India’s state-owned Odisha Mining Corporation (OMC) has raised base prices for chrome ore at its October auction due to limited availability. The move reflects ongoing challenges in the ferro-chrome market, exacerbated by high production costs and sluggish demand in the stainless steel sector.
Price Adjustments
OMC set the base price for 48-49.99% grade chrome ore from its South Kaliapani mines at 21,026 rupees per tonne (Rs/t) ($250.2/t) in October, an increase from 19,743 Rs/t at its September auction. The base price for 50-51.99% grade ore from Sukrangi mines was set at 21,902 Rs/t, marking its return to the market after being absent in September’s auction.
Despite the price hikes, trading activity remains muted due to the high production costs and subdued demand in the stainless steel market. Domestic producers are seeking higher returns in the local market, partially driven by elevated freight costs in the export market.
Auction Highlights
On October 18, state-owned trading firm MSTC, on behalf of OMC, will auction:
- 23,500 tonnes of 42-54% grade friable chrome ore from the South Kaliapani and Sukrangi mines (up from 22,400 tonnes in September).
- 1,400 tonnes of 32-36% grade lumps, chips, and fines from Bangur mines.
Stable Ferro-Chrome Prices
India’s domestic 60% grade ferro-chrome prices remained stable at Rs110,000-111,500 per tonne ex-works as of October 17. However, producers continue to face margin pressures due to high input costs and limited market activity.
Market Context
The increase in OMC’s base prices highlights the supply-demand imbalance in India’s chrome ore market. With limited ore availability and sluggish demand in the stainless steel sector, market participants are keeping a close eye on auction outcomes and price trends.
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