Indian ferro chrome market is facing an acute shortage of chrome ore and thus the production of ferro chrome is severely hampered. Only a handful of producers are left with any inventory of chrome ore as OMC hasn’t held any chrome ore auctions since May’20 (except the sub-grade ores which received very modest response).
However, the private miners are now with an advantage and have sold chrome ore at around INR 4,000/t higher from last month's prices. This has further added to the cost of production of ferro chrome by approximately INR 10,000/t.
Meanwhile, since the major ore reserves are with OMC and TATA, and