IFAPA request to raise duty on imports of ferroalloys.

While a recession of the world economy emerged from September of 2008 has caused the protective movements at each country, Indian Ferroalloys Producers Association has recently requested government of India to raise the duty on imports of ferroalloys from 5% at present to 10% but ferronickel, which is not produced in India, has excluded from the objective materials.

According to estimation by IFAPA, India has been increasing to import ferroalloys from the beginning of 2009 and main sources for the imports are South Africa, Brazil and China. Also, main ferroalloys imported into India are ferrosilicon, ferromanganese and some of ferrochrome. Also, IFAPA has referred to a raise of the duties on exports of Indian chrome ores and requested to revise these export duties, saying that it is necessary to raise to a level of INR 6,000 per ton as doubled from that at present.

In view of the fact that chrome deposits in India have a limitation, Indian ferroalloys producers have insisted from a previous time to prohibit exports of Indian chrome ores and negotiated with the authorities concerned on this subject but are so far unable to obtain a substantial outcome. However, owing to this action and a depression of the demand for chrome ores from China, the quantity of chrome ores exported from India to China in 2008 came down to 550,000 tons, having had a considerable decrease of 44% compared with that in 2007.

However, on the contrary to that Indian ferroalloys producers are attempting to elevate the barrier for imports of ferroalloys by means of raising the import duties, Indian producers have also taken the strong offensive from the beginning of 2009 to export high carbon ferrochrome and silicomanganese for China and Japan, because Europe is a traditional market for exports of Indian ferroalloys but this business has been depressed seriously at present.

Since the settlements of accounts closed on March 31st 2009 in India were over, the current prices of Indian ferroalloys have turned to rebound and risen to USD 1,150 per tonne CIF for silicomanganese to be shipped from India to Japan in August to September period and also 85 US cents per pound of Cr CIF for high carbon ferrochrome to be shipped from India to China in July to September quarter. Some cargoes of Indian high carbon ferrochrome are also being offered at 90 US Cents CIF.