This document discusses the present scenario and future outlook of the ferro-alloy industry in India. It notes that while the industry has faced issues like high power costs and increased imports, steps are being taken toward consolidation, cost savings and acquiring overseas mining assets. New challenges from competitors in Malaysia are also discussed. Solutions proposed include agglomeration of raw materials, larger furnace sizes, waste heat utilization and improving raw material handling.

1. Ferro-alloy Markets in India – Present Scenario
and Way Ahead
Gouranga Sen
Geovale Services
Manganese/Chrome Ores and Ferro-alloys Summit, by FIMI, Kolkata, 30 Nov - 1 Dec 2015

2. 1
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3. 4
Indian Ferro-alloys Industry
No updates! No excitement! No change?
2

4. 4
Issues with Indian Ferro-alloys Industry
- Then
2003
3

5. 4
Issues with Indian Ferro-alloys Industry
- Now
2012

6. 5
Did Things Change Now?
-
0.5
1.0
1.5
2.0
2.5
3.0
FY09-10 FY10-11 FY11-12 FY12-13 FY13-14 FY14-15
Supply Situation of Manganese Ore in India
(Mt)
Production Import
0
200
400
600
800
1000
1200
Electricity Generation in India (in Billion
KWH)
-
1.0
2.0
3.0
4.0
5.0
FY09-10 FY10-11 FY11-12 FY12-13 FY13-14 FY14-15
Supply Situation of Chromite Ore in India
(Mt)
Production Consumption
2.0
3.0
4.0
5.0
6.0
7.0
8.0
Average Power Tariff for Industrial Sector
in Key States (Rs./Kwh)
Andhra Pradesh
West Bengal
Odisha
Chhattisgarh
Jharkhand
Maharashtra
Madhya Pradesh

7. 6
Some Respite from Falling RM &
Reductant Prices
0
100
200
300
400
500
600
Apr-10
Sep-10
Feb-11
Jul-11
Dec-11
May-12
Oct-12
Mar-13
Aug-13
Jan-14
Jun-14
Nov-14
Apr-15
Manganese Ore Price (USD/kg) Metallurgical Coke Price (USD/t, FoB China)

8. 7
But Rising Imports Heightens Threat to
The FA Industry
0
40
80
120
160
FY09-10 FY10-11 FY-11-12 FY12-13 FY13-14 FY14-15
Imports of Bulk Ferro-alloys to India (Kt)
Manganese Alloys Chrome Alloys Ferro-silicon
New Challenge: Malaysia
• ~657,000 t Mn alloy
capacity by 2016
• Hydroelectricity based
• 50% cheaper cost of power
than India
• Availability of medium
grade of Mn
• Proximity to key consuming
countries – China, Japan,
Korea, Taiwan, SE Asia
25%
20%
15%
10%
7.5%
5%
0%
5% 5% 5% 5% 5%
0%
5%
10%
15%
20%
25%
30%
Basic Customs Duty on FerroAlloys

9. Still facing the issues of
• Availability of high grade Mn ore
• High power cost
• Increased imports
• Low capacity utilization
• Infrastructure bottleneck
8
Result: Structurally Handicapped
Source: BSE
-400
-300
-200
-100
0
100
200
2011 2012 2013 2014 2015
Net Profit of Major Ferro-Alloy Producing Coc. (Rs. Cr.)
IMFA
VBC Ferro Alloys
Facor Alloys
Impex Ferro Tech
Rohit Ferro-Tech
29 out of 35 units
shutdown in Andhra
Pradesh

10. • 2nd largest steel producer
in the world
• No iron ore
• No coal
• Still major exporter of steel
at low price
9
Indian FA Industry Needs to Look Up
Driving Forces
• Consolidation and capacity rationalization
• long-term investment in global alliances, FDI, innovation and
service
• Leverage R&D for higher value-added, specialized products
• Cost savings and productivity improvement
Japanese Steel Industry

11. • Largest pvt. steel producer in India
• No iron ore
• No coal
• One of the lowest cost steel
producer
10
Indian FA Industry Needs to Look Up
JSW Steel

12. Investment in beneficiation & use of agglomerated feed
• Agglomerates offers better reducibility
• Lowers the specific power consumption
• Helps to attain smooth furnace operation
11
Solutions: Agglomeration &
Productivity Improvement
Productivity improvement by having large size of Furnaces
• Smaller furnaces have low per capita output
• Single furnace having high transformer capacity desirable
than operating several small furnaces
• Raw materials preparation and handling systems must also
be modernized

13. Minimizing heat loss and use waste gases for power
generation
• Closed furnace should be adopted than open furnaces
• Will lead to reduce heat loss from the furnace and enable
recovery of latent heat in exhaust gases
12
Solutions: Waste Heat Utilization & RM
Handling
Proper handling of raw material
• Saving raw materials from adding moisture
• Low moisture level in raw materials reduces specific power
consumption and specific consumption of reductants
• Gives steady slag and metal composition

14. 13
Solutions: RM Asset Acquisition
Manganese & Chromite Mine Acquisition – India and Abroad
• Important to have own source of RM supply
• Should press Govt. for auctioning more Mn & Cr blocks
• Look for good quality overseas mining asset acquisition

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16. 14
Geovale Case Study: Prospecting Study
of Manganese, Zimbabwe
For a large steel producer in India Geovale carried out a prospecting study in
Zimbabwe on Geological-structural mapping of the prospect and ore
sampling with intent to evaluate the manganese resource and understand its
potential. We conducted the following studies
• Remote sensing study
• Geological litho-structural mapping
• Grab sampling and channel sampling by
Pitting and trenching
• Structural interpretation and Resource
assessment

17. 15
Geovale Case Study: In-situ Resource
Estimation, Sukinda
For a large miner in India Geovale carried out a resource estimation
study for chormite mining asset in Sukinda, Odisha. We conducted the
following studies
• General advisory and valuation on Sukinda
Chromite
• In-situ resource assessment in Sukinda
• Stockpile are assessment in Sukinda

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