India: OMC Chrome Ore Auction Receives Overwhelming Response
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State-Owned, Odisha Mining Corporation (OMC) conducted the e-auction on 25 Sep'19. The auction received an overwhelming response as the entire quantity was booked at approximately 27% higher than the base price. In the current scenario, the Ferro Chrome Producers were out of inventory and were waiting for the auctions. In line with the recent increase in the Chrome Ore prices, the Ferro Chrome prices are expected to rise considerably. The production costs of Ferro Chrome will now increase by approximately INR 7000/MT and therefore it is likely that the prices of Ferro Chrome will shoot up.
OMC offered a total of 30,500 MT Friable Chrome Ore for auction, of which 29,900MT Friable Chrome Ore is from South Kalapani Chromite Mines and 600 MT from Sukrangi Chromite Mines.
The bid received for the Friable Ores are in the range of INR 12103 - 12203/MT for +54% grade, INR 11690-11590/MT for 52-54% grade, INR 10886-10986/MT for 48-50% grade. The lower grades from South Kaliapani Mines received the highest response as the 46-48% were booked at 39% higher than the base price and 44-46% were booked at 40% higher prices than the base price.
| OMC Chrome Ore Auction held on 25 Sep 2019 | ||||||
| Mines | Grade (Cr2O3) | Base Price (INR/MT) | Quantity offered for e-auction (MT) | Bid Quantity (MT) | Weighted avg Price (INR/WMT) | Percentage change over Base Price |
| South Kaliapani Chromite Mines | .+54% | 9,903 | 16,400 | 16,400 | 12,201 | 23.21 |
| 52-54 | 9,090 | 3,000 | 3,000 | 11,657 | 28.24 | |
| 48-50 | 8,386 | 4,500 | 4,500 | 10,933 | 30.37 | |
| 46-48 | 7,226 | 1,500 | 1,500 | 10,026 | 38.75 | |
| 44-46 | 6,352 | 4,500 | 4,500 | 8,881 | 39.81 | |
| Sukrangi Chromite Mines | 48-50 | 8,130 | 200 | 200 | 9,330 | 14.76 |
| 46-48 | 6,931 | 100 | 100 | 6,931 | 0.00 | |
| 44-46 | 6,629 | 300 | 300 | 7,629 | 15.09 | |
| Total | 30,500 | 30,500 | ||||
| Paradip Port | 48-50 | 7,428 | 2,478.545 | No Bid | 7,428 | 0.00 |
Source: Odisha Govt.
All Quantity in MT
