High input costs for silicomanganese force Indian ferroalloy producers to focus on ferrochrome

Wednesday, 28 December 2016 15:44:16 (GMT+3)   |   Kolkata
       

High prices of inputs for production of silicomanganese alloys are making silicomanganese production economically unviable in the ferroalloy industry, according to a leading Indian producer.
 
“Unlike in the case of ferrochrome where international prices have more than doubled ensuring higher margins for Indian exporters, international prices of silcomanganese have not seen matching rises and so local silicomanganese producers are facing severe challenges in meeting the rising costs of domestic inputs,” Ankit Patni, managing director of Rohit Ferro-Tech Limited, has said. 
 
“For example, in case of silicomanganese with 60 percent manganese content, the international price of the alloy has not even doubled standing at INR 63,000/mt ($916/mt) at present from levels of around INR 38,000/mt ($552/mt) six months ago,” he said.
 
“But the international price of coking coal, a key imported input constituting 20 percent of the production cost for silicomanganese, has surged from $100/mt to $300/mt over the past one year,” he said.
 
“At the same time, the domestic price of manganese has risen by 200 percent over the last four months, and, unless international prices of silicomanganese move up further, Indian production of manganese alloys at current input price levels is unviable,” Mr. Patni added.
 
He said that, in sharp contrast, since international prices of  ferrochrome with  60 percent chrome content had on average increased to INR 110,000/mt (about $1,600/mt) at present from levels of around INR 60,000/mt (about $872/mt) six months ago, most ferroalloy producers with  multiple alloy production capacities are focusing on chrome alloys to maximize margins rather than focusing on manganese alloys.

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