Kalinga Nagar industries’ body urges OMC to hike chrome ore production

The reduction has fetched high premium to the OMC but unviable and exorbitant price to LTL buyers.
Image used for representational purposes only
Image used for representational purposes only

JAJPUR: Affected by the demand and supply gap, the Kalinga Nagar Industries Association (KNIA) has urged the Odisha Mining Corporation (OMC) to hike chrome ore production and offer the required quantity in the national e-auction for long term linkage (LTL) buyers in order to protect the interest of industries in the state.

In a letter to the OMC chairman, KNIA president PL Kandoi requested the former to understand the gnawing problems of industries due to short supply of chrome ore and unviable price for LTL buyers.

Ferrochrome industries in the state are facing hardships amid the supply crunch of chrome ore, mainly arising out of the reduction in the quantity of chrome ore in the national e-auction offered by the OMC, the lone state-run merchant miner.

“Availability of chrome ore in the open commercial market has dropped sharply over the last seven to eight months due to reduced production from Tata Steel Sukinda Mines as well as lower production from OMC. This has resulted in low quantity being offered in the national e-auction. Due to shortage of chrome ore, the buyers within and outside the state have participated aggressively and bid high premium to the offered base price resulting in unviable price for LTL buyers,” the KNIA president said in his letter.

Kandoi further said OMC has drastically reduced the quantities under 54+ and 52- 54 grades of chrome ore in the e-auction. The reduction has fetched high premium to the OMC but unviable and exorbitant price to LTL buyers.

The KNIA said the OMC should offer at least 6,000 MT of the 48-50 grade and stop offering 54+ and 52-54 grade. “The price derived for 48-50 grades in the national e-auction should be used for fixing price on prorata basis for the 54+ and 52-54 grades for LTL buyers,” it added.

The industry body also suggested debarring of companies having COB plants and end-product as monolithic from participation above 40+ grades. The aggressive bidding by these companies have pushed the prices to an unviable range resulting in loss to the Ferro- chrome industries operating in the state.

Related Stories

No stories found.

X
The New Indian Express
www.newindianexpress.com