The paper to be published as the lead article in the Metals & Minerals Review – Ferroalloy Special – January 2013 issue makes a case that while there are many positives for the ferroalloy industry in India, viz. scalability, location near high growth markets, cost advantages of labour, technical manpower domestically available ore and reducing price of reductant blend; the growth in ferroalloy production is stymied by inadequate infrastructure, rising cost & availability issues in thermal coal, fear of getting saddled with old technology, and lack of capital.
The global slowing of demand for ferroalloys, the re-emergence of China as a major exporter and the threat of imports are other factors that the Indian ferroalloy industry would need to tackle.
Therefore it is very difficult to predict if the ferroalloy industry in India can repeat the spectacular double digit growth of the last five years. The only certainty is of ferroalloy prices; which have been volatile and unpredictable in the past – they will remain volatile and unpredictable in the future: some things will never change!!