Contact Your Financial
Adviser Money Making MC
27
February 2017
Amid
concerns over cheap imports of ferro alloys from Malaysia, Indian ferro alloy
producers on Monday called for protective measures from the Steel Ministry.
"A
significant amount of ferro alloys is imported in India from Malaysia as they
were able to produce the same at a much lower cost. Power is the major input
for producing ferro alloys and it constitutes about 30 percent of the total
cost. Power tariff in India is on a higher side as compared to other ferro
alloy producing nations. The Total Investment
& Insurance Solutions
"Safeguard
measures could help to protect the industry," said the Indian Ferro Alloy
Producers' Association Chairman D.B. Sundara Ramam.
Cross-subsidy
in power tariff further puts the non-captive producers at a disadvantage and
the difference in power tariff between India and Malaysia is $20 per MWh, he
said.
Speaking
on the safeguard measures sought by the industry, Ministry of Steel's Director
Anupam Prakash said the association represents 80 per cent of the ferro alloy
sector and it can seek for the duty after applying for the same with a note
mentioning that imports are damaging the industry.
"There
are procedures for imposing safeguards. If the association makes an application
mentioning that imports are damaging the industry, the Directorate General of
Safeguards investigates the case and come up with recommendations. And
accordingly notifications are issued," Prakash said. The Total Investment & Insurance Solutions
Ramam
said upcoming supplies of manganese alloys with lower power tariff from
Malaysian and Indonesian is expected to bring down profitability.
"In
2016, 3,65,000 tonnes of extra capacity has come into the market and additional
1,80,000 tonnes is expected to come in 2017," he said. The Total Investment & Insurance Solutions
According
to association, India produces around 3.5 million tonnes of ferro alloys and
the Rs 23,000 crore industry employs around one lakh people. The Total Investment & Insurance Solutions
Out
of this India consumes around 2.3 million tonnes of ferro alloys and the rest
1.3 million tonnes is exported which earns foreign exchange of around Rs 8,900
crore, he said.The Total Investment & Insurance
Solutions
No comments:
Post a Comment