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200% price hike in manganese ore jolts Indian ferroalloys sector- The 18th China(Guangzhou ) Int¡¯l tube & pipe Processing Equipment Exhibition
11/10/2016 steel tube expo-tube &pipe expo |
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A significant 200% surge in manganese ore prices in the last 3-4 months has sent alarm bells ringing across the domestic ferroalloys sector. The latter is a key input for steel makers but 70% of the industry has become import dependent as few new mines have come up in the recent past. The development has worried steel companies, too, since each tonne of steel contains about 6 kg of manganese alloys.
An analyst said "The local Ferro alloys industry is highly fragmented leaving it with no real pricing power even in the wake of manganese ore prices spiraling to INR 21,000 from INR 7,000per tonne since July this year.¡±
However, in the face of soaring input costs, price of Ferro alloys has increased by only around 30%. This has led to a situation where a number of smaller Ferro alloys units have either close down or are on the verge of being shut down with fears of sizeable job losses of nearly a few lakhs.
With an installed capacity of 3.5 million tonne, manganese alloys industry is currently operating at 70% capacity. While domestic sales are 1.5 million tonne, the exports amount to around one million tonne.
Recently, a tender floated by Steel Authority of India Limited failed to evoke any response from domestic ferro alloy producers. Uncertainty over prices and input costs is being attributed as the main reason for this.
- The 18th China(Guangzhou ) Int¡¯l tube
& pipe Processing Equipment Exhibition
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