Indian Ferro Alloys Producers’ Association (IFAPA) conducted its national summit which was held in Kolkata on 27th and 28th February 2017. There were discussions and presentations by industry stalwarts which provided insights into the global and domestic Ferro Alloy market.
India produces around 3.5 MnT of Ferro Alloys and consumes around 2.3 MnT while exporting the rest. Ferro Chrome contributes 1 MnT towards the yearly production and the rest 2.5 MnT are Manganese Alloys. India has been witnessing an increase of 5.4% in its Ferro Alloys production on CAGR basis.
The Indian Manganese Alloys industry are on the brink of facing stiff competition from Malaysian and Indonesian market. In the current scenario the Indian ferro alloys producers have been seeking protection from the low priced Malaysian imports. It is expected that by the end of 2017, Samalju Industrial Park in Malaysia will be producing as much as 0.29 MnT of SiMn and 0.26MnT of high carbon FeMn annually. This is currently seen as the biggest threats to Indian Manganese Alloy producers in Asian subcontinent.
In the global market, demand for ferro chrome surpassed its supply by 0.2 MnT in 2016. The price went upwards from Oct’16, due to which some producers could come back to business. In respect to production, India contributes around 10% of global Ferro Chrome production. The global supply is expected to increase to 11.7 MnT reflecting a growth rate of 3%.
The stainless steel industry is expected to grow which may increase the demand of Ferro chrome with an expected rate of 5%. China and India are considered as the key drivers of global stainless steel growth.
Also, highlighted were the various challenges which the Indian Ferro Alloys industry is facing:
- Power tariff has been the most imperative factor which is responsible for India to lag behind its competitors.
- The non-captive producers are at perils as the power is cross subsidized.
- Scarcity of low phosphorus coke.
- High cost of production due to anti-dumping duty on Chinese coke.
- Manganese alloys industry has also been facing difficulties amid non-availability of high grade manganese ore.
- Poor logistics remains an issue for the industry as well.