Ferro Alloys Sector Faces Global Trade Tensions and Growth Opportunities
The domestic ferro alloys sector faces significant threats from global trade tensions and carbon border taxes. Raising production capacity attracts challenges like weakening steel production. Industry bodies urge government intervention for free trade agreements and competitiveness through sustainable measures to combat barriers and ensure growth.
- Country:
- India
The Indian ferro alloys sector is encountering major challenges due to escalating global trade tensions, which threaten its increased production capacity. The Indian Ferro Alloy Producers' Association (IFAPA) has appealed for governmental intervention amidst these difficulties.
Ferro alloys, including silico manganese and ferro chrome, are crucial for steel production due to their deoxidizing and alloying functions. These materials enhance properties such as hardness and corrosion resistance of steel.
Chairman Manish Sarda highlighted the rise in production and export potential for India's ferro alloys, noting the doubled manufacturing capacity since FY20. However, global trade barriers and the anticipated carbon border tax create significant threats. Solutions include governmental measures and increased industry competitiveness through sustainable practices.
(With inputs from agencies.)
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