Chattisgarh Based Ferro Manufacturers Hold Offers on Hike in Power Tariff

Chhattisgarh State Electricity Board (CSEB) has increased power tariff by 16-20% for state based steelmakers w.e.f 1 June’15.

Chhattisgarh based ferro alloy manufacturers hold offers amid recent hike in power tariff by state government. Power tariff has been increased by net 0.75 per unit, which will be effective from June 1, 2015. This development will result in an increase in production cost of INR 3000/MT, as around 3800-4000 units are required to produce 1 tonne of silico manganese. Current offers stand at INR 47,000/mt and most manufacturers have preferred to close their sales and hold a wait and watch notion, as they are unsure if the market will absorb higher prices.

A producer source revealed to SteelMint, “Prices for silico manganese would have come down by 1000-1500 in a day or two on account of poor demand, but we have decided to hold our offers after the hike in power tariff was announced.”

Ferro Alloy Capacity in Chhattisgarh

There are about 30-31 ferro alloy units in Chhattisgarh which produce ferro manganese and silico manganese. The state contributes around 20% of total ferro alloy capacity in the country. Most of the ferro alloys produced in Chhattisgarh are sold to states like Maharashtra, Gujarat, Rajasthan and some of the material is also exported to other nations.

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