Indian Ferro Alloy Scenario - An Overview

Transcription

1 Indian Ferro Alloy Scenario - An Overview - Sanjay Sengupta F erro Alloys are vital a 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 deoxidants and also as alloying Agents. Ferro Alloys are added in steelmaking not only for deoxidation but also for improvement in the 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. 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 ion 41 March 2015 Alloy and special steel ion Stainless Steel ion 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 Aluminium, Ferro Silico Zirconium, Ferro Titanium, Ferro Boron, Ferro Nickel Magnesium etc. Ferro Alloys As De-oxidant For Steelmaking Ferro Alloys are used for deoxidation of the steel melt and also as an alloying element addition depending on the type of ferroalloy. It is the relative

2 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 Deoxidation 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 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 Mix Name of Producer/Location Ferro Alloy Corporation Ltd. Vijayanagram, A.P. Ferromanganese, Ferrochrome ChandrapurFerroAlloys Ltd. Chandrapur, Maharashtra, SAIL Ferro Manganese, Silico Manganese Sandur Manganese & Iron OreLtd.,Haspet, Karnataka Ferro Manganese, Ispat Alloys Balasore, Odisha Ferro Manganese, *Indian Charge Chrome Ltd., Chandwar, Odisha Charge Chrome, Ferro Alloy Corp.Ltd., Balasore,Odisha Charge Chrome, H.C. *Indian Metals & Ferro AlloysLtd.,Rayagara, Karatpur, Odisha Ferro Chome, Charge Chrome,Ferro Silicon *Tata Steel Ferro Alloy Plant, Bamnipar, Kendujhar, Odisha H. C., Charge Chrome Tata Steel Ferro Alloy Plant, Rawmet, Odisha H. C. Jindal Ferro Alloys Plant, Kothavasala, A. P. Jindal Stainless Ltd, Raigarh, Chattisgarh Tata Steel Ferro Alloy Plant Goda, Odisha Silico Manganese, Ferro Manganese Nav Chrome Ltd, Raigarh, Chattisgarh Ferro Manganese, Silico Manganese Ltd, Odisha Jeypur Sugar Ltd, Jeypur, Odisha VISL. Bhadravati Karnataka- SAIL Nava Bharat Ferro Alloys Ltd, Polancha, A. P., Silico Manganese Rohit Ferro Tech Ltd., Bankura, West Bengal M. B. Ispat Corporation, Bamunara, Burdhawan, W. Bengal Ferro Manganese, Silico Manganese VBC Ferro Alloys Ltd, Rudram, Medak, A.P. Ferro Manganese, Silico Mangnese * These are 100% Export Oriented Units (EOUs) 42 March 2015

3 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 are mentioned below: Costal Ferro Alloys of Abhijit Group has planned to set up a Ferro Manganese unit of 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 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 its 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, getting 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 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: Capacity MP) () ion In (MT) Capacity Utilisation(%) Manganese Alloys Chromium Alloys Ferro Silicon Noble Alloys Total Type of Alloys In, 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 12th Plan. 10. ion of Ferro Alloys In Source : IFAPA India: to. ion of Ferro Alloys in India between and is presented in Table2. Table-2: ion of Ferro Alloys In India: to. (P) H.C. Ferro Manganese 390, , , ,708 M.C. Ferro Manganese 8,000 8,222 8,386 7,704 L.C. Ferro Manganese 6,000 6,018 5,775 3,905 1,250,000 1,066,485 8,89,434 8,86,325 M.C. Silico Manganese 24,000 24,108 24,087 27,106 L.C. Silico Manganese 25,000 25,454 22,368 33,576 Ferro Silicon 1,17,000 97,682 1,10,742 96,972 10,30,000 8,90,916 7,90,072 9,64,806 2,000 2,007 1, ,852,000 2,462,775 Type of Ferro Alloys (A) BULK Ferro Alloys Silico Manganese HC Ferro chrome/charge chrome L.C. Ferro chrome SUB-Total (A) 43 March ,24,502 2,38,5537

4 (B) Noble Ferro Alloys Ferro Molybdenum 3,050 2,882 2,112 2,899 Ferro Vanadium 1,500 1,389 1,501 1,585 Ferro Tungsten ,500 17,132 13,400 13,525 7,600 7,017 8,170 8, ,100 1,929 1,561 1,937 Ferro Boron Ferro Nickel Magnesium ,360 30,858 27,235 29,185 Grand Total (A)+(B) 2,885,360 2,493,633 2,25,1737 2, Growth Percentage 15.70% 10.74% (-) 6.75% 20.65% Ferro Silico Magnesium Ferro Aluminium Ferro Silico Zirconium Ferro Titanium Sub-Total (B) Source: IFAPA (P) = Provisional 11. Exports of Ferro Alloys from India Exports of Ferro Alloys from India between and are Shown in Table- 3 Table-3: Exports of Ferro Alloys From India: to (Tonnes) (A) BULK Ferro Alloys 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) 44 March 2015

5 (B) Noble Ferro Alloys Ferro Molybdenum Ferro Tungsten Ferro Titanium Ferro Vanadium Ferro Niobium Ferro Phosphorus Ferro Columbium 30 Ferro Silco Zirconium Ferro Silco Magnesium 2,156 Ferro Boron 64 Ferro Silico Chromium Others Sub-Total (B) Grand Total (A)+(B) Value Rs. Million(Approx) Percentage of exports 12. Imports of Ferro Alloys By India Imports of Ferro Alloys by India between and are shown in Table-4. Table- 4: Imports of Ferro Alloys by India: to (tonnes) (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) 45 March 2015

6 (B)Noble Ferro Alloys Ferro Molybdenum Ferro Vanadium Ferro Tungsten Ferro Silico Magnesium Ferro Silico Chromium Ferro Silico Zirconium Ferro Titanium 1658 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 14. Contribution of Ferro Alloy Industry to India's economy 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 were as follows: Reserves: Mt Remaining Resources: Mt Total Resources: Mt About percent of reserves are of BF grade and percent are Ferro Manganese, Medium and BF mixed grades. India produced 2.86 Mt of Manganese Ore in recording a growth Of 17.2 percent over 2.44 Mt in the in as compared to 689,000 tonnes in with a sharp decline of 74.9 percent. Imports Of chromite in was 86,000 tonnes recording a decline of 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. previous year. India's export of Manganese was Mt in declining by percent over Mt in the preceding year. Imports of Manganese Ore in was Mt up by percent Over Mt in. Chromium Ore or Chromite As per UNFC system, the total resources of Chromite in India were as Follows (in thousand tonnes) as on : Reserves- 53,970 Remaining Reserves- 149,376 Total Reserves: 203,346 ion of Chromite in was 4.26 Mt as against 3.14 Mt in recording a growth of percent. India exported 173,000 tonnes of chromite 46 March 2015 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 and are shown Below. Year Foreign Exchange Value Earned In Million US$ Source: IPAPA Earnings of Ferro Alloy Industry Ploughed Back To Society. The industry has re-invested its profit

7 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 provided jobs to thousands of 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 ) 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 ion 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 47 March 2015 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 -Fecontent- 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 intraindustry 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.