Speaking on the occasion, Manish Sarda, Chairman, IFAPA, said, “India is the largest exporter of manganese alloys and the third-largest exporter of ferrochrome. However, the industry’s global standing and foreign exchange generation potential is constrained due to high domestic power prices compared to other exporting geographies, tariffs on key imports, etc. For instance, the current basic customs duty of 2.5% on manganese ore imports should be removed in lieu of low availability of high-grade ore in India”.
Sarda expressed optimism that the steel ministry will help the industry steer through these roadblocks in its growth journey.
In his opening address, HD Kumaraswamy highlighted the pivotal role ferro alloys play in the steel value chain and also acknowledged several pressing challenges. These include high power tariffs, restricted high-grade domestic ore supply, and a shortage of high-quality coke, which have collectively impacted the competitiveness of India’s ferro alloys industry. “The steel ministry is aware of these issues and is committed to taking timely measures to support the ferro alloys sector,” the minister assured.
ET SpotlightMr. Manish Sarda (Chairman, IFAPA ), Hon’ble Shri H D Kumaraswamy (Minister of Heavy Industries & Steel, Govt. of INDIA) Mr. Ajit Kumar Saxsena ( Chairman- Cum Managing Director, MOIL, India)
In FY ’24, India’s production of manganese alloys (ferro and silico manganese) stood at 3.5 million tonnes (mnt), out of which the total exports were 1.8 mnt. Of the 1.5 mnt of chrome alloy production, export shipments accounted for 0.75 MMT.The total ferro alloys production was 5.2 mnt in the bygone fiscal, out of which the export volume was 2.6 mnt.
Shifting global manganese alloy production and exports
Production cuts of manganese alloys in China, Japan, and South Korea are expected to be offset by increased output in India and Malaysia. However, the conference highlighted that India’s share of manganese alloy exports may shrink in 2024. Experts urged Indian producers to explore non-renewable energy sources such as natural gas to remain competitive, especially in light of the upcoming Carbon Border Adjustment Mechanism (CBAM) implementation in 2026. The Indian manganese industry is facing significant challenges due to a shortage of high-quality manganese ore. To address this issue, it is crucial for the Ministry of Mines to release manganese blocks with better quality and larger reserves, which would support the needs of manganese smelters and drive sustainable growth in the industry.MOIL’s expansion plans
MOIL, India’s largest manganese ore producer, outlined its target to achieve 3.5 million tonnes of manganese ore output by 2030 by improving exploration efforts, enhancing environmental clearance limits, and expanding operations into new states.
Ferrochrome market pressures and indian challenges
The ferrochrome market is currently under pressure due to weak demand in the European Union and the United States, coupled with high production volumes in China. Indian ferrochrome producers are facing significant challenges, including limited availability of lumpy chrome ore and a growing price disparity in global markets. The conference emphasised the need for Indian producers to enhance operational efficiencies in order to navigate difficult market conditions.
Technology and sustainability: Moving towards renewable energy
The importance of adopting advanced technology and transitioning towards renewable energy sources was a major theme throughout the conference. Experts stressed that ore beneficiation is crucial in the Indian context, given the need to maximise domestic resource utilisation and improve material efficiency. To counter the high costs of volatile thermal power prices in India, the energy-intensive ferro alloys sector was encouraged to shift towards renewable energy, leveraging its lower cost to gain long-term cost benefits while also becoming more sustainable. Additionally, it is essential to ensure that manganese smelters have access to power either through the Indian Energy Exchange (IEX) or the national grid at globally competitive prices. This will enable the industry to remain cost-efficient and competitive in the global market.
ET SpotlightMr. Gaurav Sharma ( CHieft Marketing Officer, FACOR/ Vedanta INDIA), Mr. Deepak Mohanty ( Advisor International Trade, IMFA, India), Mr. Sirsendhu Mukherjee ( Vice- Chairman, IFAPA, Chief Operations Ferro Alloys & Minerals Division Tata Steel, INDIA), Mr. Sureshbabu Chigurupalli (Business Head Ferro Alloys & Projects, IMFA)
Ferro molybdenum and ferro vanadium: Growing demand
India’s ferro molybdenum (FeMo) and ferro vanadium (FeV) demand is projected to rise in the near future. The growing demand for these critical alloys is driven by India’s expanding infrastructure, manufacturing, and railway sectors. The conference also highlighted that India’s dependence on ferro molybdenum imports has decreased due to the imposition of safeguard duties on imports from South Korea, as well as the abolition of basic customs duties (BCD) on raw materials.
ET SpotlightMr. Sandeep Goenka ( Director, Team Ferro Alloys Pvt. Ltd. India), Mr. Vinay Agarwal ( Director, Hira Ferro Alloys Limited, India), Mr. Gautam Kumar ( Director, Asia Minerals Ltd.), Ms. Nishtha Mukherjee ( GM, Bigmint, India)
The 4th International Ferro Alloys Conference brought to light the critical issues facing India’s ferro alloys industry while providing a roadmap for future growth and sustainability. The conference concluded with a call for greater collaboration between industry stakeholders and the government to support the growth of India’s ferro alloys sector and its contribution to steel production in both the domestic and global markets.
IFAPA, the apex body of the domestic ferro alloys industry, acts as a bridge between the industry and the policy establishment. Established in 1961, it has around 85 members. BigMint is the Knowledge and Media Partner of the 4th International Ferro Alloys Conference which features an array of technical sessions on steel and stainless steel, ore and alloys, power, coke, and technology, as well as the decarbonisation of ferrous metallurgy and the ferro alloys sector in India.