Coupled with stainless steel scrap, this should result in a definite improvement in prices. This trend is already visible from the finalisation of 3rd quarter prices and ``we believe it will continue in similar fashion.''IMFA /ICCL group, he said would like to step up production of ferro chrome during the year. He said IMFA would produce about 2500 tonnes per month and ICCL will produce 4500 to 5000 tonnes per month.

The target for exports of ferro chrome would be 50,000 tonnes, he said during 1999-2000.

During 1998-99 the IMFA/ICCL group had produced around 60,000 tonnes of ferro chrome and exported 40,000 tonnes and in 1999-2000 this tonnage would be stepped up. He said IMFA group was also an important supplier of ferrochrome to the local stainless steel producers.

The group was now gone into production of chrome ore also and was doing both open cast and under ground mining. He said that monthly production of chrome ore of different grades was between 6000 and 7000 tonnes.

But the group needed more chrome and bought over 100,000 tonnes of chrome ore from the Orissa Mining Corporation. It also bought some chrome ore from Mysore Minerals to blend with other ores. IMFA/ICCL group was also self- sufficient in power with its 108 mw captive power plant.

Surplus power,if any, he said is supplied to the state grid. There are plans to expand the capacity of the power plant. Though he did not disclose the cost of production of power, according to industry analysts, it is one of the lowest among the ferro alloy producers.

Due to this ample availability of cheap power, IMFA was today the biggest producer of ferro silicon in the country. Panda said that monthly production of ferro silicon was around 3000 tonnes and it went tomeet the bulk of the requirements of the consumers in both public and private sectors.

India perhaps will end exporting over 200,000 tonnes of ferro chrome during the year. Tatas have stated that they will be able to export around 100,000 tonnes and the rest which includes FACOR, Jindal Strips, GMR Vasavi and Andhra Ferro put together should be able to add another 70,000 to 80,000 tonnes for export in 1999-2000.

Conditions appear to be favourable. Elkem has reportedly downed both its furnaces producing ferro chrome for relining and will lose a month or two of production. Similary producers in South Africa are also cutting down production to push up prices.

The aim is to get a price increase of around 10 cents per lb which would make ferro chrome profitable to many in the world. However, any sharp increase in prices invites reopening of closed facilities and particulary in China, which can produce and export large quantities.

But China does not have any chrome ore and imports it from India, SouthAfrica, Sudan, Turkey and Iran. When the Chinese come into the market, prices of chrome ore also rise and the supplies for local producers of ferro chrome in India decline.

Thus the boom also has its special effects on Indian producers who do not have captive ore resources.

But now the government has allotted mining rights for chrome ore to ferro chrome producers. These new producers with mining rights are IMFA/ICCL, Jindal and Ispat. Among these only IMFA/ICCL appears to be doing mining while the other two have yet to get their properties and start mining activity.

FACOR has been doing mining of chrome ore and production of ferro chrome. FACOR has been the first to do underground mining of chrome ore and also beneficiation of low grade ores. However FACOR is not self-sufficient in chrome ore and buys part of its requirements from the market.

Only Tatas have enough chrome for self- consumption and export. They have emerged as the biggest producer and exporter of both chrome ore and ferro chrome inthe country and are likely to remain so.