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Balasore Alloys Ltd (BAL) plans to step up ferrochrome production capacity at its Odisha plant to 150,000 tonne a year from 100,000 tonne a year at present, betting on better global demand for ferroalloys.
The company is sourcing power, a key input for ferrochrome production, from the state grid. It has requested state-run power trader Gridco to enhance power supply to its facility at Balgopalpur in Balasore district through the power distribution firm, Nesco.
"We have plans to raise the capacity to 150,000 tonne a year in 2014-15. Currently we are buying 44 Mw power, and have requested for additional 52-55 Mw supply to meet the expansion requirement," said a company source.
Balasore Alloys has its captive chrome ore mine in Odisha. It has also plans to raise the mines output in the coming financial year.
"In 2014-15, we will be producing 400,000 tonne chrome ore, up from current output of 300,000 tonne via underground mining," the company source said.
At present, the company has open cast operation at its chrome mine at Sukinda valley in Odisha.
In future, the company aims to raise the ferrochrome production capacity to 200,000 tonne while chrome ore output will be enhanced to 600,000 tonne.
BAL, along with many other ferrochrome maker of the state, export more than half of the product to China, Southeast Asian nations and European countries. Though last year, the demand from China dwindled due to capacity addition there, sales enquiries are still robust from other markets, said the source.
"Demand scenario is good from Korea, Taiwan and Japan. European markets also look positive," the senior official said. Indian ferrochrome makers are finding it hard to sell their product in a highly competitive market. The rate of this commodity is moving in the tight range of Rs 71,000-72,000 per tonne since October 2013. BAL said, it expected the prices to move up in future.
Ferrochrome is used in making stainless steel. It is produced by smelting chrome ore and requires large amount of power in the process. Most ferrochrome makers rely on their captive power generation while others depend upon expensive state-grid power. BAL said, its cost of production would not go up despite higher power cost, as better sales realisation will take care of the manufacturing cost.
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- [Editor:sunzhichao]
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