indian ferro alloy scenario - an overview -...
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March 201541
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Indian
Ferro
Alloy
Scenario - An Overview - Sanjay Sengupta
Role of Ferro Alloys
Ferro Alloys are used in steelmaking which consists of less than one Percent of the total raw material required for steel production. Despite of being a very low constituent, Ferro Alloys are vital additives for steelmaking.
The principal function of ferroalloy addition is that it increases the resistance of steel to corrosion and oxidation, improves its hardenibility, tensile strength at high temperatures, wear and abrasion resistance and increases its other properties like creep strength etc. Ferro Alloys are generally used to impart engineering properties to steel. Ferro Alloys are vital input for producing all type of steel and are used as raw material in the production of special steels, alloy steels and stainless steel.
Demand Drivers of Ferro Alloys
The major demand drivers of Ferro Alloys are:
Crude Steel Production
erro Alloys are vital Fa d d i t i v e s f o r steelmaking. These are
special alloys of Iron containing some chemical elements like Mn, Cr, Si, C etc. These Alloys are used in steelmaking as de-oxidants and also as alloying Agents. Ferro Alloys are added in steelmaking not only for de-o x i d a t i o n b u t a l s o f o r i m p r o v e m e n t i n t h e mechanical properties of steel. Depending on the Process of steelmaking and the type of steel to be produced, the Requirement of Ferro Alloys varies widely.
Alloy and special steel Production
Stainless Steel Production
Types of Ferro Alloys
There are two types of Ferro Alloys known as BULKFERRO ALLOYS and NOBLE FERROALLOYS.
Bulk Ferro Alloys are H. C. Ferro Manganese, MC Ferro Manganese L.C. Ferro Manganese, Silico Manganese, M.C.Silico Manganese, Ferro Silicon, HC Ferro chrome/charge chrome, L.C. Ferro chrome etc. Noble Ferro Alloys are Ferro Molybdenum, Ferro Vanadium, Ferro Tungsten, Ferro Silico Magnesium, Ferro
A l u m i n i u m , F e r r o S i l i c o Zirconium, Ferro Titanium, Ferro Boron,
Ferro Nickel Magnesium etc.
Ferro Alloys As De-oxidant For Steelmaking
Ferro Alloys are used for de-oxidation of the steel melt and also as an alloying element addition depending on the type of ferroalloy. It is the relative
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affinity of alloying elements/ de-oxidizers towards oxygen at different temperatures that determines the method and the time of addition of ferroalloys for achieving the optimum result.
In general, the loss of ferroalloys is highest when introduced in the furnace than when added to the jet of steel or the ladle on tapping. De-oxidants like Si-Man, Fe-Mn, Fe-Si and aluminium are used singly or in combination depending on the quality of steel to be produced.
For achieving the lowest level of oxygen in the steel melt, aluminium De-oxidation is preferred. Also, for the silicate inclusions in steel, Si-Mn and aluminium
are used in combination as de-oxidants which results in effective de-oxidation.
Growth of the Ferroalloy Industry in India:
Ferroalloy production in the organized sector started in the mid-sixties Of the last century. Initially, ferroalloy units came up in the states of Andhra Pradesh, Karnataka, Odisha and Maharashtra mainly due to Availability and proximity of raw material sources.
The second phase of the Ferroalloy industry occurred during the 1980 On product diversion, assimilation, advanced technology as well as setting up of Export
Oriented Units (EOUs) aimed at earning foreign exchange. The Indian Ferroalloy industry was liberalized in 1991-92. As a result, a number of small and medium units having a transformer rating between 2.5 MVA and 16.5 MVA emerged in the production of BULK Ferro Alloys in the States of Chhattisgarh, Madhya Pradesh, West Bengal, Pondicherry, Goa, Jharkhand and Meghalaya.
7. Major Producers of Ferro Alloys In India
The names, locations and product-mix of some major producers of Ferro Alloys are shown in Table -1.
Name of Producer/Location Product- Mix
ChandrapurFerroAlloys Ltd. Chandrapur, Maharashtra, SAIL
Sandur Manganese & Iron OreLtd.,Haspet, Karnataka
Ispat Alloys Balasore, Odisha
Ferro Alloy Corporation Ltd. Vijayanagram, A.P.
*Indian Charge Chrome Ltd., Chandwar, Odisha
Ferro Alloy Corp.Ltd., Balasore,Odisha
*Indian Metals & Ferro AlloysLtd.,Rayagara, Karatpur, Odisha
*Tata Steel Ferro Alloy Plant, Bamnipar, Kendujhar, Odisha
Tata Steel Ferro Alloy Plant, Rawmet, Odisha
Jindal Ferro Alloys Plant, Kothavasala, A. P.
Jindal Stainless Ltd, Raigarh, Chattisgarh
Tata Steel Ferro Alloy Plant Goda, Odisha
Nav Chrome Ltd, Raigarh, Chattisgarh
Ferro Chrome Ltd, Odisha
Jeypur Sugar Ltd, Jeypur, Odisha
VISL. Bhadravati Karnataka- SAIL
Nava Bharat Ferro Alloys Ltd, Polancha, A. P.
Rohit Ferro Tech Ltd., Bankura, West Bengal
M. B. Ispat Corporation, Bamunara, Burdhawan, W. Bengal
VBC Ferro Alloys Ltd, Rudram, Medak, A.P.
Ferromanganese, Ferrochrome
Ferro Manganese, Silico Manganese
Ferro Manganese, Ferro Chrome
Ferro Manganese, Ferro Chrome
Charge Chrome, Ferro Chrome
Charge Chrome, H.C. Ferro Chrome
Ferro Chome, Charge Chrome,Ferro Silicon
H. C. Ferro Chrome, Charge Chrome
H. C. Ferro Chrome
Ferro Chrome
Ferro Chrome
Silico Manganese, Ferro Manganese
Ferro Manganese, Silico Manganese
Ferro Chrome
Ferro Chrome
Ferro Chrome
Ferro Chrome, Silico Manganese
Ferro Chrome
Ferro Manganese, Silico Manganese
Ferro Manganese, Silico Mangnese
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* These are 100% Export Oriented Units (EOUs)
8. New Projects & Expansions
Some of the new projects in the Indian Ferro Alloy sector and expansion of capacities planned and were, scheduled to be commissioned by 2014-15 are mentioned below:
Costal Ferro Alloys of Abhijit Group has planned to set up a Ferro Manganese unit of 352.000 tpy capacity at Haldia in West Bengal. The unit will install 16 submerged arc furnaces with a capacity of 13.5 MVA in two phases. In Phase I, eight furnaces will be installed at an investment of Rs. 550 Crore.
Metsil Exports has planned to set up a ferro alloy unit of 36,000 tpy capacity at Gooty in the Anantapur district of Andhra Pradesh at a cost of Rs. 60 Crore.
RINL and Manganese Ore (India) Ltd. (MOIL) have formed a joint enture named RINMOIL and will set up a joint venture project for producing ferroalloys. The JV project will come up in the Vijayanagaram disrict of Andhra Pradesh. The feasibility report has been prepared by MECON.
Samadadia Enterprises Ltd. has planned to set up a FerroAlloy Unit alongwith a captive power plant at Jargarh in the Jabalpur district of Madhya Pradesh at an estimated investment of Rs. 2696 crore. Haritha Ferro Alloys have planned to set up a 62,380 tpy capacity Ferro Alloy Plant at Hakimpet in the Medak district of Andhra Pradesh. The project will be implemented in two phases and will involve an investment of Rs. 350 crore
Shri Hari Ferro Alloys will set up a Ferro Alloys unit at Bhikanoor in the Nizamabad district of Andhra Pradesh in two phases. The first phase will include a Ferro Silicon unit (11,088 tpy capacity) and a Ferro Manganese Unit (14,784 tpy capacity) and a sub-inerged electric furnace.
Time Ferro Alloys is expanding its Barjora facility in the Bankura district of West Bengal by increasing its ferro alloy capacity from 11,000 tpy to 34,000 tpy at an investment of 25 crore.
Andhra Ferro Alloy is expanding its Ferro Alloy capacity from 20 TPD to 100 TPD of the unit at Srinivasnagar in the Vijayanagram district at a cost of about Rs. 25 crore.
Utkal Manufacturing and Services, the logistic unit of IMFA group, has planned
to expand the capacity of its charge chrome furnace from 30 MVA to 60 MVA of its Chaudwar unit in the Jaipur district of Odisha at an investment of Rs.100 crore.
Balasore Alloys has planned to expand the capacity of i ts chrome ore beneficiation plant from 5,000 TPM to 7,500 TPM, the unit is situated at Balgopalpur in the Balasore district in Odisha, at an investment of Rs.20 crore.
Some of the projects may be delayed indefinitely due to land acquisition problems, gett ing environmental
clearance. Some may not come up at all due to the failure to obtain credit from Banks or other financial institutions. But the overall capacity of the Indian. Ferro Alloy industry is destined to go up ultimately.
9. Capacity
Capacity addition of the Indian Ferro Alloy Industry as on 31-03-11 is estimated at around 2,300 MVA. As a result, the transformer capacity has gone up to about 2,900 MVA and in tonnage term, it has crossed 5.15 million tonnes. The break-up is shown below:
Type of Alloys Capacity MP) (2010-11)
Production In 2010-11(MT)
CapacityUtilisation(%)
Manganese Alloys 3.16 1.70 54
Chromium Alloys 1.69 1.04 62
Ferro Silicon 0.25 0.12 48
Noble Alloys 0.05 0.03 60
Total 5.15 2.89 56
Source : IFAPAIn 2009-10, the capacity utilisation was 62 percent. With many new Ferro Alloy units coming up and expansion of existing units, the capacity of the Indian Ferro Industry is expected to go up substantially during the
th 12 Plan.
10. Production of Ferro Alloys In
India: 2007-08 to 2010-11.
Production of Ferro Alloys in India between 2007-08 and 2010-11 is presented in Table2.
Table-2: Production of Ferro Alloys In India: 2007-08 to 2010-11.
Type of Ferro Alloys
(A) BULK Ferro Alloys
H.C. Ferro Manganese
M.C. Ferro Manganese
L.C. Ferro Manganese
Silico Manganese
M.C. Silico Manganese
L.C. Silico Manganese
Ferro Silicon
HC Ferro chrome/charge chrome
L.C. Ferro chrome
SUB-Total (A)
2010-11 (P)
390,000
8,000
6,000
1,250,000
24,000
25,000
1,17,000
10,30,000
2,000
2,852,000
2009-10
341,883
8,222
6,018
1,066,485
24,108
25,454
97,682
8,90,916
2,007
2,462,775
372,286
8,386
5,775
8,89,434
24,087
22,368
1,10,742
7,90,072
1,352
22,24,502
2008-09 2007-08
364,708
7,704
3,905
8,86,325
27,106
33,576
96,972
9,64,806
235
2,38,5537
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(B) Noble Ferro Alloys
Ferro Molybdenum
Ferro Vanadium
Ferro Tungsten
Ferro Silico Magnesium
Ferro Aluminium
Ferro Silico Zirconium
Ferro Titanium
Ferro Boron
Ferro Nickel Magnesium
Sub-Total (B)
Grand Total (A)+(B)
Growth Percentage
3,050
1,500
150
18,500
7,600
120
2,100
90
250
33,360
2,885,360
15.70%
2009-10 2008-09 2007-082010-11
2,882
1,389
150
17,132
7,017
120
1,929
90
209
30,858
2,493,633
10.74%
2,112
1,501
150
13,400
8,170
37
1,561
83
221
27,235
2,25,1737
(-) 6.75%
2,899
1,585
51
13,525
8,877
109
1,937
80
122
29,185
2,414722
20.65%
Source: IFAPA (P) = Provisional
11. Exports of Ferro Alloys from India
Exports of Ferro Alloys from India between 2007-08 and 2010-11 are Shown in Table- 3Table-3: Exports of Ferro Alloys From India: 2007-08 to 2010-11 (Tonnes)
Product 2009-10 2008-09 2007-082010-11
Ferro Manganese: Carbon containing>2% by weight
Other Ferro Manganese Ferro Silicon containing>55% of Si
Other Ferro Silicon
Ferro Silico Manganese
Ferrochrome: Carbon containing>4% by weight
Other Ferro Chromium
Charge Chrome
Sub-Total (A)
(A) BULK Ferro Alloys
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Product 2009-10 2008-09 2007-082010-11
Ferro Tungsten
Ferro Titanium
Ferro Vanadium
Ferro Niobium
Ferro Phosphorus
Ferro Columbium
(B) Noble Ferro Alloys
Ferro Molybdenum
Ferro Silco Zirconium
Ferro Silco Magnesium
Ferro Boron
Ferro Silico Chromium
Others
Sub-Total (B)
Grand Total (A)+(B)
Value Rs. Million(Approx)
Percentage of exports
30
2,156
64
12. Imports of Ferro Alloys By IndiaImports of Ferro Alloys by India between 2007-08 and 2010-11 are shown in Table-4.Table- 4: Imports of Ferro Alloys by India: 2007-08 to 2010-11 (tonnes)
Product 2009-10 2008-09 2007-082010-11
(A) Bulk Ferro Alloys
Ferro Manganese: Carbon Containing>2% by weight
Other Ferro Manganese
Ferro Silicon combining >55% of Si
Other Ferro Silicon
Ferro Silico Manganese
Ferro Chromium: Carbon containing>4%by weight
Other Ferro Chromium
Charge Chrome
Sub-Total (A)
-
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Product
(B)Noble Ferro Alloys
Ferro Molybdenum
Ferro Vanadium
Ferro Tungsten
Ferro Silico Magnesium
Ferro Silico Chromium
Ferro Silico Zirconium
Ferro Titanium
Ferro Boron
Ferro Niobium
Ferro Phosphorus
Ferro Zirconium
Others
Sub-Total(B)
Grand Total (A+B)
Total Value Rs. Million
% age increase in Import Value
2009-10 2008-09 2007-082010-11
1658
N.B.: Import of Ferro Nickel is not shown as the same is not Manufactured indigenously. Source: IFAPA
13. Raw Materials for Bulk Ferro Alloys
India has reasonable reserves of Manganese Ore and Chromium Ore To meet the demand of its Bulk Ferro Alloy industry. To boost the volume Of reserves, it is essential to convert the low grade ore by modern Beneficiation process.
Manganese Ore
As per the Indian Bureau of Mines (IBM) Survey Report the all-India Reserves of Manganese Ore as on 01-04-2010 were as follows:
Reserves: 141.977 Mt
Remaining Resources: 288.003 Mt
Total Resources: 429.980 Mt
About 34.14 percent of reserves are of BF grade and 24.33 percent are Ferro Manganese, Medium and BF mixed grades. India produced 2.86 Mt of Manganese Ore in 2010-11 recording a growth Of 17.2 percent over 2.44 Mt in the
previous year.
India's export of Manganese was 117.96 Mt in 2010-11 declining by 59.25 percent over 289.47Mt in the preceding year.
Imports of Manganese Ore in 2010-11 was 1299.6 Mt up by 62.88 percent
Over 797.9 Mt in 2009-10.
Chromium Ore or Chromite
As per UNFC system, the total resources of Chromite in India were as Follows (in thousand tonnes) as on 01-04-2010:
Reserves- 53,970
Remaining Reserves- 149,376
Total Reserves: 203,346
Production of Chromite in 2010-11 was 4.26 Mt as against 3.14 Mt in 2009-10 recording a growth of 35.67 percent.
India exported 173,000 tonnes of chromite
in 2010-11 as compared to 689,000 tonnes in 2009-10 with a sharp decline of 74.9 percent. Imports Of chromite in 2010-11 was 86,000 tonnes recording a decline of 10.42 Percent over the previous year.
To support the Ferrochrome industry the export of chromite and ore Concentrate is being brought down gradually. Presently, the industry Is using Chromium Concentrate up to 50 percent.
Usefulness of Chromium Ore
Chromium imparts strength, hardness, toughness, magnetism and offers Resistance to abrasion, corrosion and also acts as a de-oxidant. Low Chromium steel of less than 5 percent Chromium along with small Quantities of nickel are used in the production of rails, automobiles, armor Plates etc. Medium chromium steel containing up to 15 percent chromium Along with small quantities of tungsten, molybdenum or silicon are used in High speed valve-engines and equipment that need resistance to Abrasion, corrosion and oxidation. High chromium steels are stainless and Super stainless that is used for making cutlery, cooking utensils, aircrafts, high speed trains etc.
14. Contribution of Ferro Alloy Industry to India's economy
Major Contributions of the Indian Ferro Industry to India's economy are Presented below:
Foreign Exchange Earner
India is a major exporter of Ferro Alloys and their exports are a major Earner of valuable foreign exchange. Foreign Exchange earned by the Indian Ferro Alloy Industry between 2006-07 and 2010-11 are shown Below.
Earnings of Ferro Alloy Industry Ploughed Back To Society.
The industry has re-invested its profit
Foreign Exchange Value Earned In Million US$
2006-07 364
2007-08 1118
2008-09 1547
2009-10 880
2010-11 2946
Year
Source: IPAPA
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into setting up of Captive Power Plants, acquiring coal and Ore mines, setting up of residential complexes, Schools, colleges, hospitals which has not only helped the socially Backward areas to grow their economy but also in generating additional Jobs in many states, mostly, in remote backward areas.
Electricity Generation
Electricity generated by the Ferro Alloy Industry through its captive Power Plants is also supplied to the Grid, thus increasing the availability of power in India.
It may be mentioned here that although the generation costs of power is Not high, the Ferro Alloy Industry pays a high tariff due to cross- Subsidization to Agriculture sector, Low Plant Factor and high Transmission and Distribution losses (sometimes reaching over 30 Percent).
Ferro Alloy is a power intensive industry. The Ferro Alloy units have to Maintain a minimum demand of 85 percent of power for their operation. According to Indian Ferro Alloys Producers' Association (IFAPA), it Clearly shows that the Ferro Alloy Industry has been paying much more Than the normal power tariff applicable for this industry, which has? Generated substantial revenue to State as well as Central Governments.
Helped Industrialization of Many Sates.
Setting up of Ferro Alloy units in the states like Odisha and West Bengal in The Eastern Region and in Andhra Pradesh and Kerala in the Southern Region has helped to industrialize these regions and has led to their Economic development.
Employment to the People.
It has been estimated that a total of about 80,000 families are supported By the Indian Ferro Alloy Industry which has p rov ided jobs to thousands o f Unemployed people in the plants /units which are located mainly in Remote areas where there is no other source of employment.
15. Major Recommendations of IFAPA for Development of the Indian Ferro Alloy Industry.
Indian Ferro Alloys Producers'. Association (IFAPA) has made the Following major recommendations for the
development and future growth Of Indian Ferro Alloy industry:
. Uniform Electricity tariff need to be made available at internationally Comparable tariff for Ferro Alloy Industry.
. The Government should increase Customs Duty to 7.5 percent from 5 percent (in 2010-11) excepting Ferro Nickel to avoid cheaper imports From other competing countries. If this cannot be done, the customs duty on raw materials should be 'NIL' For production of Ferro Alloys at a cheaper cost.
. The Government should devise a mechanism for making funds available
To the industry at a very low or 'NIL' rate of interest for setting up Captive Power Plants, thus bringing the cost of power generation to a level at Which Ferro Alloy production in India would be viable and sustainable?
The industry should be granted open access to transmit the power Generated by the Captive Power Plants to members' unit(s) without Payment of any surcharge and be only charged for wheeling and Transmission at a low rate. Also, the industry should be given Captive Coal Blocks to do their own coal mining to bring down its cost.
The Ferro Alloy industry needs to be exempted from paying the Electricity Duty on exports of Ferro Alloys as well as on the electricity generation For captive requirement and usage.
The idle Manganese and Chrome Ore bearing areas, reserved for PSUs Needs to be de-reserved and handed over to private parties with requisite Expertise for mineral exploration.
The Government should initiate a comprehensive fast track programme like Aerial Survey to look into the potential deposits -------- for chrome Ore and Manganese Ore deposits which need further exploration.
Considering the projected increase in Carbon and Stainless Steel Production in future, conservation of ore is essential. It is suggested Those exploratory surveys for beyond 100- Meter depth should be Intensified.
There is a scope to implement the scheme of utilizing more and more
Agglomerated feed in the manufacture of Chrome and Manganese Ferro Alloys. Since Pellets have an advantage over briquettes, Pelletization process has to be eventually followed by the Indian Plants to reduce their costs by bringing down the specific power Consumption. There is a
need for suppliers to offer low cost smaller Capacity modern Pelletisation Plants, considering the existing small And medium size furnaces in use by the Ferro Alloy industry. Need for Government sponsored Research in collaboration with the Indian Ferro Alloy industry, particularly in beneficiation of low grade. Manganese Ore with the high content -Fe-content- suitable for the Manganese Ore found in Eastern India.
Mines in the country are national property. Therefore, the Government
Need to instruct the state-owned Orissa Mining Corporation (OMC) to Supply ores on equal proportions to all the manufacturers of FerroChrome Units in the country without any discrimination.
To allocate coal linkage as well as coal mines to the power plants of the Ferro Alloy industry as captive mines.
16. Conclusion
Despite various constraints, the Indian Ferro
Alloy industry has shown Remarkable performance
in recent years. The Industry is providing Vital inputs
for the Indian steel industry and earning valuable
foreign exchange for the country. Major constraints
faced by the industry which is highly power
intensive, Are high cost of power, steep increase in
raw materials/ other input costs, Non-availability of
high grade ore, high financial cost, ever increasing
rail/ road freights, shortage of wagons, inadequate
port facilities, FTAs with Many countries which has
resulted in reduction of customs duty or its Total
exemption. Ferro Alloy industry being an
unorganized entity, there is no exchange Of ideas
and achievements made by the industry. It is essential
to Consolidate the achievements made by the
industry so far and keep Abreast of the inter and intra-
industry developments, besides striving To meet the
quantitative requirements of the steel industry.
Research and Development should be a top priority
and the government should render Positive help in
this regard. The recommendations of the Indian Ferro
Alloy Producers' Association Should be seriously
examined by the Government and to take steps to
Implement them in a proactive manner.
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