India's ferro-alloy producers are scaling up production as the country's steel industry expands toward a 300-million-tonne capacity target by 2031. Industry body IFAPA said at a Goa conference that India can become a global ferro-alloys hub if it secures more of its own raw materials.
At a glance
- India's crude steel production reached 165 million tonnes in 2025, up more than 10% year-on-year, targeted to hit 300 million tonnes by 2031.
- Indian silico-manganese output nearly doubled from 1.9 million tonnes in FY20 to 3.5 million tonnes in FY26.
- IFAPA chairman Manish Sarda said securing indigenous raw materials is key for Indian ferro-alloy producers to compete globally.
Background
Ferro-alloys are iron-based compounds, such as ferro-manganese and ferro-chrome, that steelmakers add during production to give steel specific properties like strength or corrosion resistance. India's steel demand has grown alongside rising per-capita consumption, and every additional tonne of steel needs matching ferro-alloy supply. That link between steel growth and ferro-alloy demand was the focus of the Indian Ferro Alloy Producers' Association's 6th International Ferro Alloys Conference in Goa.
What happened
India's steel industry produced 165 million tonnes of crude steel in 2025, up more than 10% year-on-year. The country has also set a target of 300 million tonnes of steelmaking capacity by 2031. The Indian Ferro Alloy Producers' Association (IFAPA) said this at its 6th International Ferro Alloys Conference in Goa. The event drew more than 700 participants across 35 speakers and 15 sessions. IFAPA said Indian silico-manganese production nearly doubled from 1.9 million tonnes in FY20 to 3.5 million tonnes in FY26. Ferro-manganese output rose from 0.9 million tonnes to 1.7 million tonnes over the same period.
Why it happened
India's steel demand has grown alongside rising living standards. Per-capita steel consumption climbed from 24 kilograms in 1991 to 109 kilograms in 2025, and IFAPA expects demand to keep growing around 7% a year. Every additional tonne of steel needs a matching supply of ferro-alloys such as ferro-manganese and ferro-chrome, which are added during steelmaking to control strength, hardness and corrosion resistance. That steady pull from steel mills is what has driven ferro-alloy producers to expand capacity over the past six years.
What it means for India
India's chrome ore production rose 12% to 3.53 million tonnes in FY2025-26 and ferro-chrome output grew 10% to 1.49 million tonnes, giving India a stronger domestic base for that alloy. Manganese ore imports, however, still rose 27% year-on-year to 4.03 million tonnes in the first half of 2026. That shows the industry remains reliant on foreign ore even as its finished-alloy output grows. IFAPA chairman Manish Sarda said "securing indigenous sources of critical raw materials must be a priority for Indian ferro-alloy producers to become globally competitive."
Our read
Outlook: neutral. This is a capacity and policy story about India's ferro-alloy sector rather than a spot-price move, though sustained steel-output growth points to steady long-term demand for ferro-alloy inputs.
What to watch
- Whether India's manganese ore imports keep rising or new domestic mining narrows the gap.
- Whether India's steel capacity expansion toward 300 million tonnes by 2031 stays on schedule.
- Whether ferro-alloy producers announce new domestic ore projects following IFAPA's raw-material push.
For information only, not investment advice.
Iron price in India
metalscost.com India reference price as of 2026-10-03.
Detailed analysis
Timeline
- 2026-09-25: IFAPA holds its 6th International Ferro Alloys Conference in Goa and highlights India's ferro-alloy production growth.
Technical view
Price is mixed relative to its 20-period and 50-period moving averages, showing no clear trend alignment.
Computed from metalscost.com's own stored price history.
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