Major Ferro Silicon producers in Bhutan may face issue in supplying materials to Indian Steel companies due to the implementation of the compulsory certificate of Quality conforming to the corresponding Indian Standards. The Ministry of Steel has passed an order on 14th Feb 2020 to include the alloy under compulsory certification by April 2020. Although the order was passed earlier in July 2019, stating for its implementation on 9 months from date of publication of the order, most of the producers in Bhutan remained unaware of the order until earlier this week.
Expectations are that such a process will take around 9-13 months for completion as most of the producers have applied in February. The chances are that for the next two quarters the supply may get heavily affected. However, the steel companies in India are willing to shift their demand to the local smelters as the quantity required for the production of 1MnT of Steel accounts to just 600MT of Ferro Silicon. Meanwhile, producers in Bhutan will have to look forward to other countries for exports. Presently, 50% of the exports from Bhutan are to India. This may escalate the prices in Guwahati to irrational heights; the prices are already higher due to Charcoal and coal shortage.
The order stated the following main points:
1. This order may be called the Steel and Steel Products (Quality Control) Order, 2019.
2. It shall come into force on the date of its publication in the Official Gazette.
3. Every steel and steel products specified in column (3) of Table 1 shall bear the Standard Mark under a licence from the Bureau as per Scheme–I of Schedule–II of the Bureau of Indian Standards (Conformity Assessment) Regulations, 2018.
4. The Bureau shall be the certifying and enforcing authority in respect of the steel and steel products, goods and articles specified in this order.
5. This order shall apply to any amendment or revision made by the Bureau to any of the Indian Standards specified in Table 1 with effect from the date notified by the Bureau in this behalf.
6. Any person who contravenes any of the provisions of this order shall be punishable under the provisions of the Bureau of Indian Standards Act, 2016.
Click here for the Steel and Steel Products (Quality Control) Order, 2020
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