India: Chrome ore dispatches fall 43% in Aug'24 amid sluggish demand, Tata's lower output

India's chrome ore dispatches saw a sharp decline of 43% m-o-m in August 2024, with volumes dropping to 157,676 t from 275,063 t in July. This decline was largely due to sluggish ferro chrome demand, as its prices reached an 8-month low in August. Another factor was Tata Steel's significant 97% drop in dispatches, down to just 1,492 t against 49,226 t in July, due to mining challenges, as sources informed.

Other major players also experienced declines in dispatch volumes. Odisha Mining Corporation (OMC) saw a 37% drop, Vedanta-Ferro Alloys Corporation Limited (FACOR) reported a 31% decline, and Indian Metals & Ferro Alloys Limited (IMFA) saw a 12% drop.

Procurement trends

IMFA was the largest buyer in August, acquiring 40,395 t from its own mines. Jindal Stainless sourced 79% (23,058 t) from OMC, 16% (4,525 t) from its own mines, and 5% (1,492 t) from Tata Steel. FACOR procured 52% (9,313 t) from OMC and the remaining 48% (8,586 t) from its own captive mines.