Ferro Silicon industry in India is going through a very tough period and one that does not seem to become any better with the trend of increasing power tariffs. The Ferro Silicon industry has gone through a cycle of high to low, with historically the industry flourishing in states like Meghalaya and other North-Eastern states, as raw materials like quartz, coal and coke area abundantly available in the region. Today due to the power tariffs in the region, barring the producers with captive power, the industry is non-competitive in terms of pricing. Bhutan is the market leader in Ferro Silicon manufacturing, with Arunachal Pradesh as the only potential competitor – as it has competitive power charges and no CST burden. SteelMint assessed that the Ferro Silicon industry has developed in Arunachal, as 3-4 manufacturers with large furnaces have come up in the last two years. Speaking to Induction Furnace owners we surveyed, highlighted that most furnaces have either stopped or massively reduced their consumption of Ferro Silicon, preferring to use Silico Manganese and Ferro Manganese instead.
Current prices of Ferro Silicon (70-75) are Rs 66,500 /MT in Guwahati, Rs 69,000-71,000/MT in Raipur, and Rs 78,000 /MT in Hyderabad. All prices mentioned are basic.
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