OMC Chrome Ore Auction Receives Weak Response

OMC Chrome Ore Auction received a poor response with only 54% of auctioned quantity was bid for.

State-owned, Odisha Mining Corporation (OMC) recently conducted an e-auction for sale of Chrome Ore on 4th Oct'17. Total quantity offered was 32,500 MT - out of which 29,500 MT was friable chrome ore (25,300 MT from South Kalaipani Mines and 4,200 MT from Sukrangi Mines). Chrome concentrate of quantity 3,000 MT was offered from COBP Kalaipani. Whereas, 2,690 MT Chrome ore fines were offered from Bangur Mines.

As per sources, only 17,400 MT Chrome Ore received bids, which barely add up to 54% of the total quantity put on auction, that too mostly at the set base price.

Out of the total offered quantity, Friable Chrome Ore from South Kalaipani Mines received maximum bids. 3,800 MT of +54% grade was auctioned at INR 13,300/MT. 3,000 MT of 52-54% grade at INR 12,807/MT. 1,500 MT of 50-52% grade at INR 12,315/MT, 1,700 MT of 48-50% grade at INR 11,822/MT, 1,000 MT of 46-48% grade at INR 11,330/MT and 1,000 MT of 44-46% grade at INR 10,837/MT.

The base price of similar grades from Sukrangi Mines was set relatively lower than that of South Kaliapani. Only 3,600 MT of the offered quantity from Sukrangi Mines received bids at the more-or-less floor price. Only 48-50% grade Chrome Conc. from COBP Kalaipani received the highest premium of 9%. 1,800 MT got bid for from the offered 2,690 MT Chrome conc. However, Chrome Ore fines offered from Bangur Mines did not receive any bids.

Considering Ferro Chrome prices coming under pressure amid scant buying from China, most of the producers are pessimistic about the Ferro Chrome market in the coming days. Hence, the fair-weather players did not bid aggressively for Chrome Ore.

Previous OMC Chrome Ore Auction on 5th Sep'17

OMC Chrome Ore Auction, which was held in September, received unusually low bids as well despite soared Ferro Chrome market.