Bright future ahead: India’s ferroalloy sector embraces transformation

The Indian Ferro Alloys and Producers Association (IFAPA) is proud to organize the 4th International Conference on Ferro Alloys, a landmark event that brought together over 550 delegates and featured insights from over 30 leading industry experts. industry in 10 dynamic sessions. Inaugurated by HD Kumaraswamy, Minister of Heavy Industries and Steel, the conference highlighted the critical role of ferroalloys in boosting India’s robust steel industry, underlining its critical contributions to both domestic markets and foreign exchange earnings. This meeting not only celebrated innovation but also opened avenues for future growth of the sector.

Speaking on the occasion, Manish Sarda, President, IFAPA, said, “India is the largest exporter of manganese alloys and the third largest exporter of ferrochrome. However, the industry’s global position and foreign exchange earning potential is limited due to to the high domestic energy capacity. Prices compared to other export geographies, tariffs on key imports, etc. For example, the current basic customs tariff of 2.5% on mineral imports. of manganese should be removed instead of low availability of high grade ore in India.”

Sarda expressed optimism that the Steel Ministry will help the industry overcome these obstacles in its growth path.

In his keynote address, HD Kumaraswamy highlighted the critical role that ferroalloys play in the steel value chain and also acknowledged several pressing challenges. These include high power tariffs, restricted supply of high-grade domestic ore and shortage of high-quality coke, which together have impacted the competitiveness of India’s ferroalloys industry. “The Ministry of Steel is aware of these problems and is committed to taking timely measures to support the ferroalloys sector,” said the minister.

In FY2024, India’s manganese (ferro and silico manganese) alloy production amounted to 3.5 million tonnes (mnt), of which total exports were 1.8 million tonnes. Of the 1.5 million tons of chromium alloy production, export shipments accounted for 0.75 million tons.The total production of ferroalloys was 5.2 million tonnes in the previous fiscal year, of which the export volume was 2.6 million tonnes.

Changing global production and exports of manganese alloys
Manganese alloy production cuts in China, Japan and South Korea are expected to be offset by increased production in India and Malaysia. However, the conference highlighted that India’s share of manganese alloy exports may reduce in 2024. Experts urged Indian producers to explore non-renewable energy sources such as natural gas to remain competitive, especially in the light of the upcoming implementation of the Carbon Border Adjustment Mechanism (CBAM). in 2026. The Indian manganese industry is facing significant challenges due to 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 meet 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 goal of achieving 3.5 million tonnes of manganese ore production by 2030 by enhancing exploration efforts, improving environmental clearance limits and expanding operations to 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, along with high production volumes in China. Indian ferrochrome producers face significant challenges, including limited availability of lump chrome ore and a growing price disparity in global markets. The conference emphasized the need for Indian producers to improve operational efficiency to navigate the difficult market conditions.

Technology and sustainability: Moving towards renewable energies
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 maximize utilization of internal resources and improve material efficiency. To counter the high costs of volatile thermal energy prices in India, the energy-intensive ferroalloys sector was encouraged to shift towards renewable energy, taking advantage of its lower cost for long-term cost benefits. and at the same time become more sustainable. Additionally, it is essential to ensure that manganese smelters have access to power, whether through the Indian Energy Exchange (IEX) or the national grid, at globally competitive prices. This will allow the industry to remain profitable and competitive in the global market.

Ferro molybdenum and ferro vanadium: growing demand
Demand for ferro molybdenum (FeMo) and ferro vanadium (FeV) from India is expected to increase 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 ferromolybdenum 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 the raw materials. premiums.

The 4th International Conference on Ferroalloys brought to light the critical issues facing the Indian ferroalloys industry while providing a roadmap for future growth and sustainability. The conference concluded with a call for greater collaboration between industry and government stakeholders to support the growth of India’s ferroalloys sector and its contribution to steel production in both the domestic and global markets.

IFAPA, the peak body of the national ferroalloys industry, acts as a bridge between the industry and the political establishment. Founded in 1961, it has around 85 members. BigMint is the knowledge and media partner of the 4th International Conference on Ferro Alloys, presenting a series of technical sessions on steel and stainless steel, minerals and alloys, energy, coke and technology, as well as the decarbonization of metallurgy ferrous and ferroalloys. sector in India.