Ferrosilicon industry faces demand and cost constraints

Ghorpade, S Y (1983) Ferrosilicon industry faces demand and cost constraints. In: Proceedings of the Seminar on Problems and Prospects of Ferro-Alloy Industry in India, Oct. 24-26, 1983, NML, Jamshedpur.



The ferrosilicon industry is caught in a vortex of demand recession, power shortage, and escalating cost of both power and charcoal — the two crucial inputs. Against an installed capacity of 91,200 tonnes, the demand is about 52,000 tonnes. Because of power cuts in Karnataka (40%) and Orissa (50%), the demand is just met at an overall capacity utilization of 54%. However, at 80% utilization under fortuitous power situation, a surplus production of 40% could result. India has successfully exported to Japan in the past. Export was banned in 1979. Therefore, power shortage and inflationary costs, not technology, are constraints on export today. Cost-competitiveness can be realised by controlled cost of inputs, liberalised credit and subsidy.As a typical case, the situation in Karnataka is cited. Power tariff in Karnataka has risen from 5.75 p/kWh (1977) to 25.95 p/kWh (1981), an increase of 351% in five years. Power cost per tonne of ferrosilicon is Rs. 2371, representing 28% of the current price; charcoal cost is Rs. 2131, representing 26% of price. The diminishing availability of charcoal owing to ecological compulsions continues to push the cost up. But more seriously, it is compelling a search for alternative reductants. Quality preference is discussed. Import of a suitable reductant seems inevitable. Under crisis ridden circumstances, it is vital that the Government takes an integrated approach to pull the industry out of its present malaise so that it can continue to support the iron and steel industry.

Item Type:Conference or Workshop Item (Paper)
Official URL/DOI:http://eprints.nmlindia.org/6030
Uncontrolled Keywords:Ferrosilicon industry; cost constraints; crucial inputs; inflationary costs; fortuitous power station
Divisions:Metal Extraction and Forming
ID Code:6030
Deposited By:Sahu A K
Deposited On:17 Sep 2012 22:05
Last Modified:17 Sep 2012 22:05
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