OPIS Insights

India Metals and Ferroalloys (IMFA), the country’s largest ferro chrome producer, aims to double production by the end of the decade, amid higher chrome ore output, domestic consolidation and rapidly changing trade flows.

M. Venkatesh, IMFA’s senior general manager for ferroalloys sales and marketing, told McCloskey that its ferro chrome production should increase by 100,000 tons next year from around 250,000-260,000 tons currently.

By 2030, annual output could ramp up to 500,000 tons, driven by an increase in chrome ore production to 1.2 mt/y at its Indian mines.

Around 90% of its ferro chrome is exported, mainly to China, South Korea and Japan. But Venkatesh expects that to change with Indian stainless steel growth increasing by 6-7% CAGR.

“Consumption is going up in India and what we’ve seen in the past with other countries, as the GDP grows, the consumption of stainless steel also grows,” Venkatesh said in a recent McCloskey webinar.

“Exports out of India in the long run is going to go down because domestic consumption is increasing.”

Higher ferro chrome consumption in India will help loosen China’s dominant grip on the pricing of global ferro chrome supplies, potentially giving Indian producers better margins.

McCloskey on September 5, 2025, assessed the China domestic 50% ferro chrome price at RMB8,365/t ($1,172) ex-works. The India domestic 60% ferro chrome price was assessed at INR115,727/t ($1,314).

Although Indian ferro chrome production will likely increase with domestic demand, Venkatesh doesn’t think it will climb to the heights of China’s production, which is around 8 mt.

“I don’t think we can produce a lot of ferro chrome because our resources are limited,” he said. “There could be a slight growth, but it will not be a massive growth.”

Additionally, Venkatesh expects a round of consolidation early next year in India’s ferro chrome sector, as smaller producers struggle to survive.

IMFA is also preparing for new market demands in Europe, as it prepares to implement the Carbon Border Adjustment Mechanism (CBAM) in January.

IMFA has signed two renewable energy agreements, representing roughly 110 MW, or 40% of its power needs.

Venkatesh doesn’t expect the greener ferro chrome material produced from renewable energy to fetch a premium in the long term, as such products become the norm.

“If somebody can get a premium, that would be very, very short lived in my opinion,” he said.