India Steel Market Watch
December 4: To make the ferro alloy makers survive in the current difficult market scenario, there is a need for more power reforms along with safeguards in imports and a relook at the export duty, according to Kaushik Paul, General Manager at MMTC.
The ferro alloys industry is currently facing challenges of low demand, high supplies leading to lower capacity utilisation levels, Paul said at the manganese/chrome ores and ferro alloys summit organised by the Federation of Indian Mineral Industries (FIMI).
Added to the low demand in the domestic market, variable costs have exceeded and ferro alloy exports have dropped with low demand from importing countries like Japan, South Korea, Taiwan and European Union, Paul said.
Thus, ferro chrome and silico manganese production is set to fall, leading to a shutdown by small players and management takeover by the financial institutions as the organisations default in loan payments, the official said.
Added to this, the cost of electricity is making up almost 43 percent of the total cost in certain regions with discoms increasing prices despite a fall in imported coal prices by 40 percent, he said.
“The industry needs more power reforms along with safeguards in imports and a relook at the export duty to survive in these difficult times,” Paul added.