August 22, 2008

OMC hiked chrome ore price by 33% to INR 18,250 per tonne

India’s Orissa Mining Corporation has increased its April to June 2008 quarter chromium ore prices by 33% to INR 18,250 per tonne duty paid.

Orissa Mining Corporation produces around 600,000 tonnes per year of chromium ore, most of which goes to the domestic market. TATA Steel produces over 1 million tonnes per annum of chromium ore, but it goes to ferrochromium producers who convert it on a toll basis instead of supplying the market.

Minerals & Metals Trading Corporation, which co ordinates India’s chromium ore exports, is also likely to raise prices for the April to June 2008 quarter. It has already increased chromium ore export prices for March 2008 by USD 100 per tonne to USD 510 per tonne but with private exporters selling at USD 580 per tonne, industry players feel that MMTC will again raise its prices. High carbon ferrochromium prices in India have risen to over INR 100,000 per tonne.