The Indian ministry of steel has passed an order to include alloys for mandatory certification from April 2020, under the Steel and Steel Products (Quality Control) Order, 2019.
Major ferro silicon suppliers were informed of the order on February 20, however, the order was dated July 22, 2019, under a title which usually covers ferro alloys.
Ferro silicon is used by the steel makers to increase the performance of steel. India imports 300,000 tonnes of ferro silicon from Bhutan, Norway and China every year.
Only a third of India’s total needs are manufactured in the country.
Global suppliers of ferro alloys have already sent a letter to the steel ministry asking for a deadline extension, as the certification process can take nine months.
Indian steel companies are getting ready to source the raw material from local manufacturers, and this regulation is likely to increase the price of ferro silicon, given a supply shortage could kick in post April 2020 .
Ferro silicon prices are currently at 90,000/tn.