MUMBAI, Aug 6: The domestic refractory industry, which is grappling with uncertainty due to change in policy in China, is seeking government help in finding alternate source of raw materials.
“In last 2-3 months, China has gone through massive transformation in terms of their environmental norms. Because of this, there has been tremendous increase in raw material prices from quarter one of this financial year and the impact has began to be felt now,” Indian Refractory Makers Association (IRMA) Chairman Hakimuddin Ali said.
The total size of the refractory industry is Rs 6,500 crore in India. India contributes 10 per cent to the total refractory production in the world.
Refractory is inorganic non-metallic material which can withstand high temperature without undergoing physio-chemical changes while remaining in contact with molten slag, metal and gases.
Indian refractory industry is dependant on China for the supply of met carbon and magnesia. China has biggest deposits of magnesite, IRMA Head of Advocacy Sameer Nagpal said.
The government needs to support the industry with a better mining policy, research and development funding for processing of raw material in India, Nagpal said.
“There are new technologies and methodologies that can help in producing magnesite. It can also be produced from sea water,” he added.
Also, the government can explore mining in the country, which will help the industry, he said.
Currently, Ali said, the rise in prices has not impacted much as manufacturers are able to manage and have began consolidating their stocks through their Chinese counterparts.
However, if things continue to remain the same, going forward, it could have far more serious impact on the industry, he added.
“If we want to go to 95 million to 300 million steel per year then an integrated support is required,” Nagpal said.
He also said, there is a need for right skill set for the refractory industry. (PTI)
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