India: Chrome ore dispatches increase 14% m-o-m in Jun'24 on higher ferro chrome prices

Indian chrome ore dispatches increased by 14% m-o-m to 383,430 tonnes (t) in June 2024 as compared to 335,239 t in May. This increase was driven by a m-o-m rise of approximately INR 1,800/t ($22/t) in ferro chrome prices and higher bids at the Odisha Mining Corporation (OMC)'s June chrome ore auction.

Dispatches rose on improved production activity in June as miners aimed to complete their targets ahead of the monsoons. Buyers were also active during this time, looking to stockpile material ahead of the rainy season. This could also be a reason for the increase in chrome ore dispatches in June.

Dispatches from OMC increased 40% m-o-m. For Indian Metals & Ferro Alloys Limited (IMFA), a slight m-o-m increase of 5% was seen.

Dispatches from Tata Steel and Ferro Alloys Corporation Limited (FACOR) decreased by 6% and 3%, respectively.

Procurement trend

In terms of procurement, Tata Steel was the largest buyer in June, securing 67,401 t from its captive mines. Jindal Stainless was the second largest buyer, purchasing 84% (49,056 t) from OMC, 9% (5,031 t) from its own mines, and the remaining 7% (4,231 t) from Tata Steel. IMFA was the third-largest buyer, obtaining 58,081 t from its own mines.