Ferro alloys producers have opposed a proposal by the Department of Anti-dumping & Allied Duties (DGAD) to levy an anti-dumping duty on low ash metallurgical coke imported from Australia and China.
In a submission to the Union steel secretary, J K Chatterjee, secretary general, Indian Ferro Alloys Producers’ Association (IFAPA) said, “Indigenous met coke industry is not capable of producing low ash metallurgical coke with ash content less than 12.5 per cent and phosphorous content less than 0.18 per cent with close tolerances, which is an absolute pre-requisite for use in ferro alloy production. Imposing any duty on import of met coke of phosphorous content below 0.18 per cent and ash content less than 12.5 per cent would deny the Indian ferro alloy industry the level playing field with other producers.”
IFAPA has also pleaded for removal of five per cent customs duty on import of coke required for the ferro alloys industry.
Met coke prices have shot up from $150 to $300 a tonne CIF (cost, insurance & freight) at Paradip port. Nut coke (smaller sized met coke) prices have also doubled from $140 to $280 a tonne in the last few months as China has imposed a policy of operating coal mines for 270 days in a year instead of 330 days earlier. Also, coking coal prices have sharply appreciated from $60 to $270-280 per tonne in the past couple of months.
Any high ash met coke will technically damage the furnaces and the consumption of coke and fluxes will be very high, leading to high operating cost. High phosphorus content in the domestically produced met coke when used leads to high phosphorous in the alloy which renders the alloy non-marketable to our major customers. Domestic producers fail to meet this requirement.
Ferro alloys industries are manpower intensive and mostly located in the interior and tribal areas of Odisha.
The ferro alloy industry is already fighting the impact of signing FTA (free trade agreement) with Malaysia and expecting a deluge of import of low cost ferro alloys due to very low power tariff of Rs 2.13 as against Rs 5-6 per unit in India, devaluation of currencies of the major producing countries like Kazakhstan, Ukraine and South Africa, ever increasing duty on account of cross subsidy on the power intensive ferro alloy industry and reduction of incentive under Merchandise Exports from India Scheme (MEIS).
The expected imposition of anti-dumping duty on low ash and low phosphorous coke imported from China/Australia required for ferro-alloy industries is expected to have a catastrophic effect on the industry.
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