November 30: Emergence of Malaysia as a supply hub of ferro alloys is a real challenge for the domestic industry, according the Federation of Indian Mineral Industries (FIMI) President H Noor Ahmed.
India’s ferro alloys sector is being squeezed by weak demand, high power costs and difficulties in accessing local mineral resources, he said.
“A toxic combination of high production costs, particularly for plants required to buy electricity from the grid at increasingly punitive rates, and financially stretched steel mills, driving a hard bargain for their purchases, has left large swathes of manganese alloys industry in poor condition,” Ahmed said.
India stands to be increasingly marginalised not only as a supplier of silico-manganese in the world market with the emerging of a new supply hub at Sarawak in Malaysia where the power rates are at least 60% lower than India’s but also faces threat of significant increase in imports of ferro alloys at cheaper prices, he stressed.
“As such, the domestic industry is already reeling under slowdown and production capacity remains under-utilised. Hence emergency of Malaysia as a supply hub of ferro alloys is a real challenge for the domestic industry,” the FIMI president said.
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